Monday, March 18 2019 12:56

ArmInfo.Representatives of companies engaged in the production of carbonated drinks continue to protest outside the government building of Armenia. They are  protesting against the draft "On Amendments and Additions to the Tax  Code of the Republic of Armenia", which provides for an increase in  the tax burden for producers of "soda".

On March 7, at the regular meeting of the Cabinet of Ministers, the  Government of Armenia approved the draft  "On amendments and  additions to the Tax Code of the Republic of Armenia". Among other  changes, in order to compensate for budget tax losses as a result of  lowering the income tax and turnover tax, and their total negative  effect on the budget is estimated at 39 billion drams, the Ministry  of Finance initially proposed to expand the list of excisable goods,  including those drinks with sugar 5 grams or more per 100 grams of  product in the amount of 10% of the cost, but not less than 30 drams  per 1 liter. Due to this, tax revenues of the state treasury will  increase by 3 billion drams. The initiative related to carbonated  drinks, and did not refer to mineral water.

According to representatives of manufacturing companies, as a result  of new tax regulations, prices for their products will rise, which  will lead to a decrease in demand for goods. In order to stay on the  market, manufacturers will be forced to cut jobs, but this will not  last long and soon only large players will remain on the market. "No  to monopolization," "No to unemployment," "The government is killing  medium-sized businesses," they chant, and demand a meeting with  Deputy Prime Minister Mher Grigoryan.  However, Assistant Prime  Minister Nairi Sargsyan came out to talk with the protesters, since,  according to him, "Mher Grigoryan is at the meeting." Tomorrow he  promised to organize a meeting with Deputy Prime Minister Grigoryan,  a representative of the Ministry of Finance, and the Ministry of  Health.  Representatives of companies, manufacturers of soda,  promised to meet at the government building again if the issue is not  resolved until Thursday, and express their strong protest against the  "draconian tax." To recall, at the government meeting, during which  the document was approved, Healthcare Minister Arsen Torosyan said  that the philosophy, which was originally put at the heart of the  document, was distorted.  "The so-called sugar tax has ceased to be a  sugar tax, because we have withdrawn from the idea of the harmfulness  of sugar-containing beverages, not including in the list other drinks  with sugar content, which are no less harmful," he stressed. Thus,  according to Torosyan, there can be no question of taking care of  public health.