During the Parliament-Government question and answer session, MP from “Tsarukyan” faction Shake Isayan asked Prime Minister Karen Karapetyan about inflation and reminded that the government representatives in the National Assembly had assured that inflation was manageable, there would be no problem, whereas it is clear that there are problems, even parliamentary hearings are going to be held on this topic. She asked whether the government did not have so much flair and political vision that the Tax Code was brought in October, whether it did not know that there would be so many increases or it really did not have any solutions.
Karen Karapetyan replied: “You immediately qualify the inflation as unpredictable, and uncontrolled. Everything is in comparison. Our official inflation is 2.6 percent, it is 6.7 percent in Georgia, and 7.9 percent in Azerbaijan. As for diesel, gasoline and natural gas prices, I want to give you the following statistics: gasoline price has increased by 20 drams, it is 430 drams, at the moment the same gasoline price is higher in Georgia, while we bring it through transit from Georgia. Gasoline user has an alternative to use gas, if he feels uncomfortable about it, he can switch to gas. Gas price has increased by 25 drams, today it is 190-220 drams. It is not good that the gas price has gone up, it would be better if the old one was left, but 220 drams is not a new requirement; not a new challenge in the market. We have worked with such prices before, and we have dropped the prices whenever possible. We have also reduced the prices for greenhouses so that this business can be established. It is possible that when the moment comes and we feel that this business has taken place and that we cannot afford concessions anymore, we will restore the price. At the same time, we also have a tariff for 220 drams in Georgia-260-310 drams. We have reduced the excise tax on diesel, we apply VAT. At the moment, this tariff is determined by the old excise and excise tax but mostly used for business. Businesses, which pay VAT, will benefit from this diesel fuel tariff”.
He said that this tariff price increase would become a burden only for agriculture. The Prime Minister said options are being discussed to subsidize agriculture. “I do not see any problem with these three products”.
Shake Isayan responded that Armenian citizens do not have any benefits from those statistical data. Recent price increases have caused a social fuss in Armenia, which has a poverty of 30 percent. She said that they were just organizing hearings, but before those various economists had predicted the rise in prices, whether it was not possible to foresee mechanisms to restrain inflation, the classic version was the increase of pensions and salaries, which was not in the plans of the government, and alternative options were not offered. After all, what is the real solution to this?
The Prime Minister replied: “I have formulated, which you might not consider a solution. If not the statistical data, then tell me an alternative way to formulate it, so you feel satisfied. I have mentioned mechanisms: wherever inflation is a burden, we will subsidize, I do not see any problems in other areas. Gasoline has an alternative. You say the inflation is horrible, I say it is not. I insist that we have 2.6 percent price rise, we will sum up the year, our growth rates will be the highest in three countries: lowest rate of inflation, highest growth rate, is this statistics or facts?”.
Hripsime JEBEJYAN
