Newsfeed

Public Services Regulatory Commission decides to reduce tariffs of some services of ArmenTel CJSC

Poaching and illegal hunting tours endanger birds in Armenia

The NKR premier: The Madrid Principles are certainly unacceptable to us

Armenian Copper Programme cuts blister copper production by 13.5%

VTB Bank (Armenia) confirms its leadership in lending

EY takes employees of Armenian ancestry back to their roots

Levon Hayraptyan's health much worse

Vahagn Hovnanyan: Oligarchs have full control of Armenian economy

John Heffern believes that Nagorno-Karabakh conflict can be resolved only through peaceful talks

In Oct 2014 Armenia to join UN peacekeeping operation in Lebanon

ICRC car fired at on Armenian-Azeri border

Artashes Shaboyan: Reduction in consumer demand has a negative effect on supermarkets

Azerbaijan mounts another sabotage attack on Line of Contact, Armenian side has 1 victim and 2 wounded

Helsinki Citizens' Assembly Vanadzor Office urges Armenian Defense Ministry to look into military conscription of a kyphotic young man

Armenia suffers no losses during crossfire initiated by Azerbaijan on Armenian-Azeri border

Tigran Davtyan: If you have a telephone with you, it means that you have a wallet with you too

Armenia's former prime minister: The indicator of the economic growth in Armenia is extremely low for the first half of 2014

RPA: OSCE Minsk Group Co-Chairs’ latest statement was addressed to Azerbaijan

French citizen lost in Gegarkunik region of Armenia

RPA does not hurry to assess 100 day activity of Hovik Abrahamyan's government

Serzh Sargsyan sees no need in arming of population of border villages

Seyran Ohanyan: Armenia has been putting in place ‘engineering facilities’ along with other measures to prevent attempts by Azerbaijani sabotage groups to infiltrate into its territory

Charges brought against Levon Hayrapetyan

RPA: Pension tax may be added to income tax

  • by Nana Martirosyan

  • Thursday, May 8, 09:50

 The pension tax may be added to the income tax to replace the accumulative pension system, Vardan Ayvazyan, an MP from the ruling Republican Party of Armenia, the Head of the Parliament Committee for Economic Affairs, told reporters, Wednesday.

"It is quite probable that the income tax will be reduced from 25% to 20% to transfer these 5% to the accumulative funds. As a result, the pension reform will not affect the incomes of the citizens. However, this is only one of the probable ways to resolve this problem," Ayvazyan said. " Since the Constitutional Court has recognized the mandatory component of the pension system unconstitutional, the citizens are free to decide whether to make payments or not. Those who have already made payments can write an application and demand their money back," he said. Nevertheless, the Republican parliamentarian said the pension system is still vulnerable and needs reform.  "45 thousand cannot satisfy the needs of pensioners. So new solutions are needed," he said.

However, the Finance Ministry of Armenia replied to ArmInfo's request over the issue saying that no changes in the system of mandatory pension payments are expected until September 2014. "These funds are automatically transferred with a special program and nothing can be changed." They in the Ministry said. Asked if it is possible to stop the process through a special application to the Ministry, the parliamentarian replied negatively.

On April 2 the Constitutional Court (CC) of Armenia cancelled the mandatory component of the accumulative pension system. Head of the Constitutional Court of Armenia Gagik Haroutiunyan read out the CC's 64-page verdict on 2 April.  The Constitutional Court adopted a decision to recognize the law null and void in the parts that infringe the citizen's right to manage his own salary. The CC has recognized invalid all the disputable articles of the law, as they are interconnected. The CC has announced 30 September the deadline for the Government and the Parliament to bring the law in line with the requirements made. The decision of the CC comes into force at the moment of announcement.

However, Felix Tokhyan, a member of the Constitutional Court, says the Law on the Mandatory Accumulative Pension System will be valid till 30 September, and the citizens are reluctant to continue making pension payments to the accumulative funds.

Meanwhile, a number of lawyers and opposition politicians consider that after the Constitutional Court's verdict the employers and employees no longer have to make pension payments. Moreover, they say that from now on the payments will be made on the voluntary basis only.
Meanwhile, Prime Minister Hovik Abrahamyan promised a decision on the pension reform that will meet the interests of all the parties concerned till July 2014.  

Send to a friend

To (e-mail)


Your name


Message


Comments

View comments (0)
  • READ ALL COMMENTS
  • POST A COMMENT

Be first to comment on this article

* Indicates required fields