
ArmInfo. Armenian Finance Minister Vahe Hovhannisyan is unconcerned by the fact that the ruling Civil Contract party secured less than 50% of the vote in the parliamentary elections.
Speaking to journalists on June 7, the minister even expressed satisfaction regarding the outcome. Addressing the Central Election Commission's refusal to hold re-runs at three polling stations, the minister shifted the blame to the opposition. According to him, the political forces that distributed election bribes have absolutely no right to complain. "There is evidence of electoral bribes. We believe that if bribes hadn't been distributed, these forces wouldn't have secured the necessary percentage to enter parliament," Vahe Hovhannisyan said. In response to journalists' remarks that the opposition similarly accuses the government—arguing that the election results would have been different if not for the recent pension increases—Hovhannisyan noted: "Who knows how that is determined? In other words, it implies that the government shouldn't do anything good at all."
When asked about the reason for the excise tax changes immediately after the elections, the Finance Minister stated that in this case, it was solely an adjustment related to inflation. He stated that the excise tax is being increased by 3%. "A few years ago, we introduced a plan for changes to excise tax rates, which remains in effect until December 31, 2026. We must present a new plan that will cover the period after January 1, 2027. That is to say, such a plan is legally required," the minister clarified. Hovhannisyan also noted that excise tax reductions are envisaged for certain categories of goods, such as fruit vodka and cognac.
Recall, the government has approved a legislative initiative providing for a revision of excise tax rates on excisable goods. As a result, prices for tobacco, alcohol, diesel fuel, and gasoline are expected to rise. The plan entails an annual 7% increase in the excise tax on tobacco products, a 30% annual increase for heated tobacco, and a 100% increase for electronic cigarettes in the first year, followed by 25% and 20% increases in the subsequent two years. The excise tax on hookah tobacco is scheduled to rise by 40% in the first year and by 30% annually for the following two years. It is also proposed to levy an excise tax on products under HS code 2404 91 000, setting the rate at 2,800 drams in the first year, with a subsequent annual increase of 30% over the next two years.