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Gurgen Arsenyan's Tax Burden Is Relieved

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  • Gurgen Arsenyan's Tax Burden Is Relieved

    GURGEN ARSENYAN'S TAX BURDEN IS RELIEVED

    Lragir.am
    24 May 06

    On May 23 the National Assembly of Armenia voted down the bill on a
    cut in the lump-sum tax on imports of cigars to Armenia. The bill,
    which was adopted on the first reading, was introduced by Member
    of Parliament Mnatsakan Petrosyan, United Labor Party. The address
    of this legislative action was not accidental because the import of
    cigars to Armenia is the business of the leader of the United Labor
    Party Gurgen Arsenyan. The bill provides for a cut in the lump-sum
    tax from 1.5 million drams per 1000 cigars to 550 thousand drams.

    Obviously, Gurgen Arsenyan took a legislative action on tax allowances
    for himself, which is approved by the majority of the parliament,
    at least on the first reading.

    Most probably, this is part of the recent deal between the United
    Labor Party and the government. The government guarantees softer
    conditions on the import of cigars, and Arsenyan agrees to vote for
    the legislative actions of the government, somehow filling in the gap
    in the coalition. Of course, in return for this the United Labor Party
    has also been granted the posts of two deputy governors, one deputy
    minister and one minister, but Gurgen Arsenyan apparently knows that
    government posts are not stable, whereas he will be importing cigars
    for a longer period, having the guarantee of the law. The evidence to
    the reliance of Gurgen Arsenyan on import of cigars is the building
    in the park in front of the conservatoire, which is said to become a
    Cigar Club, reported to belong to Gurgen Arsenyan. In this context,
    it is possible that besides arrangements with the government and
    government's instructions the members of parliament had a more
    serious motive to vote for more convenient conditions on the import
    of cigars. The members of parliament have probably heard about the
    Cigar Club, and they are probably hopeful to get an invitation to
    the opening night and even try free and quality cigars. Besides,
    they probably also expect that with lowers costs on import Gurgen
    Arsenyan will sell cigars at a cheaper price, and they will smoke
    a good deal of cigars. And we may be sure that he will do, because
    Gurgen Arsenyan has already announced once that he is ashamed of
    getting excess profit. Although it is also possible that this feeling
    has become habitual for Arsenyan, and it may not force him to lower
    the price of this product along with the cut in tax on this product.
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