Right decisions not made in governance system: Mikael Melkumyan

Prosperous Armenia faction does not consider package of amendments in Tax legislation as drastic.

Lawmaker Mikael Melkumyan told the reporters that though some representatives of the political majority claim that more drastic changes are expected in the next phase but this package does not encourage investors as they really expect drastic changes.

As to tax equalization proposal, Melkumyan stressed that if it is failed to maintain the balance the consumption of investments and taxes will be reduced which will result in budget losses. The lawmaker stressed that the situation is not normal and the balance is not kept right.

As to the claims of some economists that as a result of equalization of income tax the excise tax will grow resulting in growth of prices of a number of products, Melkumyan said it will in its turn bring to reduction of consumption.

“It will result in the reduction of consumption when prices grow and consumption reduces,” he said, adding that the ones who will suffer more will be people with low income.

“Of course we must see on what products we are instituting the excise. We have already made the mistake, for instance with Hay Cola, but we stepped back as Hay Cola is being consumed by people with low income. It means they fail to make right decisions in right time in the governance system,” he said.

The amendments in tax legislation will be discussed at the NA in the first decade of June at the extraordinary session.