Epress.am News from Armenia
Armenian National Congress MP Hrant Bagratyan in parliament today proposed a legislative amendment to eliminate the excise tax on wine production in order to develop the industry. Bagratyan, an economist and former prime minister of Armenia, said that Armenia being a "grape homeland" has become a vodka-drinking country as the latter is cheaper.
"We are forcing Armenia into becoming a vodka-drinking country. A grape homeland drinks vodka — we drink vodka because we are poor," he said.
According to him, grapes are cheap in Armenia, thus the cost price of wine is low, but a bottle of wine is sold for at least 1,600 AMD (about $3.80 USD), where 1,100 AMD ($2.66) is the cost of the bottle, label, and cork. Thus, Bagratyan is proposing to apply excise tax only on the contents and not the entire bottle.
Head of the Standing Committee on Economic Affairs, Republican Party of Armenia MP Vardan Ayvazyan, in turn, said he'd like to be honest and say in parliament that to take any steps against Russian vodka will be dangerous in Armenia.
"They openly said, if you put restrictions on our vodka, tomorrow you won't bring [export] your cognac," he said.
In order to help local wine producers Ayvazyan suggested instead of legislative amendments to appeal to bankers with the request to provide loans with low interest rates to villagers.
Ayvazyan added this issue can be discussed in the future.