WATCH: Prime Minister to Arsen Torosyan – See the Headlines That Will Arise Due to Your Statements
Today, during a government session discussing the draft on amendments and additions to the Tax Code, Armenia's Minister of Health Arsen Torosyan expressed his desire to draw attention to several matters.
“We are currently voting on a draft we received at 10:00 AM. It is true that Mr. Djandzhugazyan tried to present it in detail, but, for example, I see one change that significantly differs from the draft two weeks ago, and now I have no opportunity to discuss it,” said Torosyan.
According to the Minister of Health, the philosophy originally set out regarding the excise tax has now been distorted. One relates to the tax called “Sugar Tax,” which is now referred to as the “Carbonated Beverages Tax.” According to Torosyan, beverages that do not contain sugar and are not carbonated are excluded from the list, but they are no less harmful.
“That is, in this case, there can be no talk of solving any health-related objectives. The state decides that one type of product should be taxed more, while another type should not be taxed for other considerations, which is incomprehensible to me,” added Torosyan.
According to Torosyan, the next change is that the excise tax on one type of tobacco product has previously been 8,500 drams and has now dropped to 2,000 drams. The reduction has occurred for reasons unknown to him.
“We are encouraging the use of this type of product by setting a very low excise tax. This is unacceptable from a health perspective and also in light of international obligations,” stated Torosyan.
It should be noted that this pertains to the tax rates on IQOS devices.
“I don’t understand one thing here, we have been discussing it for eight months and find out that we still are not informed about the discussions, why is this so?” Prime Minister Nikol Pashinyan responded.
According to Arsen Torosyan, they, as interested parties, have not been involved in the discussions.
“Listen, when an NGO says they haven't been involved in discussions, I can still understand that, but for the minister to say it, excuse me, is surprising to me,” responded Pashinyan, adding that Arsen Torosyan is not interested in revenue entry into the budget but rather in making tobacco expensive enough that people do not smoke.
According to the Prime Minister, the government cannot be solely focused on health, finance, or social issues. There must also be considerations for tax revenues and the purchasing of farmers' products.
“Now see what headlines will arise in the press as a result of your statements,” added the Prime Minister.