Deductions from Salaries Will Increase Starting January 1, 2021, Economist

The burden of the government's failed tax policy is being placed on the middle and poor classes. This was stated by Suren Parsyan, the head of the Economic Research Office of the ARF, on his Facebook page.

He specifically noted: “The current authorities are trying to raise about 23 billion AMD by putting an additional tax burden on the middle and poor classes. Starting January 1, 2021, deductions from salaries will increase. Instead of paying 1,000 AMD, employees will pay 1,500, 3,000, 5,500, 8,500, and 15,000 AMD as a stamp fee.”

“It is unequivocal that the state must address the social issues of fallen and disabled servicemen and their families. Just as with pensions and allowances, the National Assembly of Armenia can allocate additional funds to the military fund in the 2021 state budget without raising new taxes. Furthermore, from the perspective of effective public financial management, it is unacceptable why a military fund should be created from the state budget, and the additional collected funds invested in various private organizations and bank assets when these funds are critically needed by the Republic of Armenia.”

“Essentially, we have created a new institute alongside the Ministry of Labor and Social Affairs—the military fund, which is essentially controlled by the Central Bank.”

“In general, the establishment of targeted taxes does not serve the interests of either business or society. Otherwise, one day these same officials may impose new taxes to purchase armored vehicles or to secure their lavish bonuses.”

“I also remind you that due to this government’s flat tax policy, high-income earners and large businesses were relieved of 30-40 billion AMD in taxes, the burden of which has again been placed on the entire society.”