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  • Taxed over Taxes: Pension reform continues to create chaos

    Taxed over Taxes: Pension reform continues to create chaos

    http://armenianow.com/society/pensions/51847/armenia_pension_reform_civil_initiative_protest
    PENSIONS | 06.02.14 | 22:54



    NAZIK ARMENAKYAN
    ArmeniaNow

    By SIRANUYSH GEVORGYAN
    ArmeniaNow reporter


    Members of the civil initiative protesting against the mandatory
    pension reform are urging state bodies in Armenia to take respective
    steps and disperse the legislative chaos created in the economic
    entities of Armenia because of the new law on pension savings.
    Enlarge Photo


    "I Object!" initiative member Davit Manukyan told the press on
    Thursday that they had received numerous employees' complaints of
    especially state budget-funded entities where they report being
    threatened to choose a pension fund. Besides, numerous companies,
    discarding the Constitutional Court decision of January 24, made
    pension savings deductions from the salary for January.

    "Pressures can be come across not only in the state system, the
    Central Bank, too, is pressuring trade banks to make their employees
    choose a pension fund," says Manukyan.

    Following the CC decision of January 24, suspending the application of
    two articles in the law until the final court ruling on March 28, some
    240,000 citizens born after 1974 gained a temporary relief from making
    their selection of savings funds and fund managers, meant to have been
    completed by January 1, while employers got exempt from penalty and
    sanctions applicable by the law for failure to make or delay the
    mandatory savings payment.

    Despite the CC interim decision, in January company accountants were
    forced to face a big issue, as the salary payment report forms already
    have the mandatory pension savings deductions, and the system does it
    automatically. Activists say the government should have first of all
    removed the line about the mandatory payment in the report form to be
    able to carry out the CC ruling.

    "How are employers planning to compensate the money, if the CC
    declares it anti-constitutional, as the law does not provide for any
    refunding mechanisms," ask members of the initiative.

    Employees of Metsamor nuclear power plant, Haypost, and even the
    National Assembly have warned about the pension deductions from their
    salaries for January. At the same time, some major companies, such as
    Orange Armenia, Ashtarak Kat, Synopsis Armenia, the American
    University of Armenia, World Vision Armenia, the Armenian Caritas and
    others, have not made the respective deductions.

    "I Object!" initiative member Gevorg Gorgisyan believes state
    officials' claims that the part about the mandatory savings payment is
    impossible to remove from the online tax report form are groundless.
    As a programmer, he has offered his assistance with it.

    Meanwhile, on Wednesday in the parliament, the Labor and Social
    Affairs Minister Artem Asatryan, responding to the question whether
    following the CC decision employers have the right not to make the
    mandatory payments to the pension funds, said that they are obliged to
    make the respective payments.

    "The CC has ruled that sanctions will not be applied against employers
    who won't make the payments," said the minister.

    Today more than a thousand citizens protesting against the application
    of the new law held a "March for Rights" urging state bodies to
    fulfill their duties properly and refrain from creating a chaos. They
    voiced their appeal in front of the Ministry of Education and
    Sciences, the Government Building, the Central Bank, the City Hall and
    the State Revenue Committee.


    From: Baghdasarian
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