Citizens of Armenia are not ready for rise in prices of a long list of essential goods
Citizens of Armenia are not ready to bear the brunt of the anticipated rise in the prices of a long list of essentials, effective from January 1, 2020, Marina Arakelyan, director of the Center for Economic Development Initiatives, said at a news conference on Tuesday.
The customs duties on 900 items of goods imported to Armenia from third countries (not from the countries, which are members of the Eurasian Economic Union, EEU ) will increase from January 1, 2020, under EEU regulations.
Earlier, the Ministry of Economy of Armenia said the list includes 293 names of vehicles, as well as a number of staples, particularly, poultry meat, frozen beef, rice, vegetable oil and butter, dairy products. According to the ministry's assessment, the maximum impact of changes in customs and excise rates on inflation will be 0.5 percentage points.
According to Arakelyan, citizens of the country are not able to bear the burden of price increases, because their incomes do not grow progressively. She believes that the government should take appropriate measures to curb the imminent inflation.
She said this year the government did not use inflation control mechanisms because the target indicator was very low. 'The problem is to ensure progressive growth of people's incomes and guarantee for them the minimum consumer basket, as well as curb inflation,” the expert noted.
Arakelyan recalled that starting January 1, 2020, there will be a transition to the flat taxation system, however, the incomes of working citizens will not change, while the budget gap, which is estimated to be 27.5 billion drams, will be compensated by an increase in indirect taxes, in particular, through the introduction of a progressive system of excise and real estate taxes.
News.Az
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