PM Pashinyan comments on price increase in major supermarkets, urges to boycott the “thieves and corrupt officials”
YEREVAN, JUNE 2, ARMENPRESS. Armenia’s Prime Minister Nikol Pashinyan commented on the drastic increase of prices of meat products and vegetables in the major supermarkets, reports Armenpress.
The PM said on Facebook that the price increases are artificial.
“Those who by artificially increasing the prices want to prove that illegality is better than the legality, will very soon feel the real power of the lawfulness”, the PM said, urging to boycott the “thieves and corrupt officials”.
As part of anticorruption campaign the National Security Service of Armenia has exposed tax evasion mechanisms developed by the largest business entities of Armenia. The mechanism is based on the registration of hundreds of individual enterprises that are in fact engaged in false entrepreneurship. According to the preliminary data, “Alex Holding” LTD, being a accompany that pays value added tax, reached an agreement with the former leadership of the State Revenue Committee (SRC) of Armenia at the end of 2016 to implement the realization of agricultural products bought from farmers in the supermarket chain “Yerevan city” under the name of different individual enterprises the annual turnover of which does not exceed 115 million AMD. This gave “Alex Holding” LTD an opportunity to pay only 2% turnover tax instead of 20% VAT and income tax. The leadership of “Alex Holding” LTD registered 461 individual enterprises at the same notary office in the name of the employees of their company and the family members of the employees.
In addition, the NSS has also revealed that the farmers who supply goods to the supermarkets mainly work without documents.
The new chairman of the State Revenue Committee Davit Ananyan announced that the agreements reached with the former government will not exist anymore. He told the economic entities that it is necessary to work with new rules and in the legal field.
On June 1 the leaders of major supermarkets sent an open letter to the Prime Minister urging to organize a meeting to discuss the current situation. They proposed to develop legislative mechanisms for solving the issue. The leaders of Yerevan City, Nor Zovk, Evrika, Kaiser, Krpak, Sas Group, Parma, Tsiran, Vas Group and Danielyan supermarkets have signed under the letter.
After the discoveries of these violations, starting from June 1 the prices of meat and agricultural products have increased by nearly 20% in supermarkets.
English – translator/editor: Aneta Harutyunyan