The purpose of the adoption of the package of drafts is the review of the excise tax rates set for the kinds of goods being taxes by the excise tax, as well as the administrative fine for the cases of alienating with high price from the maximum retail price of the tobacco product. The package of draft laws on Amending the RA Tax Code and on Making Addenda to the RA Code on Administrative Offences was debated in the first reading at June 9 extraordinary sitting of the NA Standing Committee on Economic Affairs.
The key rapporteur, the RA Deputy Minister of Finance Arman Poghosyan first of all presented the excise tax system and the rates beginning from 2019. According to him, every year the rates and prices of the tobacco and alcohol drinks were proportionally increased.
It was noted that the legislative package proposes to set 8% indexation for every year: to increase the rates of the tobacco product by 10% every year, in case of E-cigarettes with 18 and more percentage, increase the rates of the vodka and ethyl spirit excise tax by 10% every year.
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According to Arman Poghosyan, the approximation of the excise tax rates is highlighted by the fact that the protection of economic interests of the EEU member States, particularly, the prevention of the illegal turnover of tobacco product.
Administrative accountability was designed for cases of selling tobacco product with the high price from the tobacco maximum retail price.
Answering the question of the deputy Aresen Torosyan why the realization of the of the tobacco product is not especially made stricter, Arman Poghosyan noted that noted that the strictures often bring to negative consequences, according to him, in case of high prices people use cheaper cigarettes of poor quality, which is more harmful for health.
In response to the question of the Deputy Chair of the Committee Babken Tunyan, how making the use of the cigarettes by law stricter will oromote the reduction of the smokers’ number, the NA deputy, the RA former Minister of Health Arsen Torosyan answered, noting: “It is evident and proved that the increase of the tobacco prices brings forth the clear reduction of the smoker’s number.”
According to the Committee member Narek Ghahramanyan, the increase of the tobacco prices by 10% will not solve the problem.
The Deputy Chair of the Committee Babken Tunyan proposed his colleagues to equalize the rate of the fruit vodkas to the rate of the ordinary vodkas. According to him, the aim of the proposal is the creation of the conditions of fair competitions.
The RA Deputy Minister of Finance Arman Poghosyan welcomed the proposal and documented that it would be discussed during the period from the first to the second reading.
The Committee members voted for the proposal and endorsed the package of drafts.
The debate of the package of drafts on the law on Making Amendments and Addenda to the law on Narcotic Drugs and Psychotropic Substances and on Amending RA Code on Administrative Offences authored by the Government was postponed up to two months by the proposal of the RA First Deputy of Health Lena Nanushyan.
Let us remind that at the previous plenary sitting by the parliament decision the debate of the package of drafts was moved to the phase of introducing proposals in written form.
National Assembly of the Republic of Armenia