We would support aligning tax structure and rates with Armenia’s international obligations, Philip Morris Management Services B.V Representative Office in Armenia told a PanARMENIAN.Net reporter, when commenting on amendments to the Law on Excise Tax approved by the Armenian parliament on October 7.
The amendments envisage a stage-by-stage equalization of rates for both local producers and importers till 2014.
The company stated that World Trade Organization (WTO) rules prohibit any fiscal or regulatory preferences for domestic products. Excise rates should be equal for local and imported cigarettes. A similar requirement on equal tax rates for imported and locally produced products is contained in the Free Trade Agreements (FTA) signed by Armenia with 13 countries, including Russia and Ukraine.
“So there is no justification for imposing higher excise tax rates on imported cigarettes compared to locally produced brands. It is inconsistent with Armenia’s WTO obligations and defies the intention of the FTA,” according to the company.
