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From January 1, 2020, prices in Armenia will increase by 7-10 percent

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19.12.2019
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From January 1, 2020, prices in Armenia will increase by an average of 7-10 percent in connection with the application of common customs duties of the  countries of the Eurasian Economic Union.

Mikayel Melkumyan, Chair of  the Standing Committee on Regional and Eurasian Integration of the  National Assembly of the RA, shared the same forecast with a similar  forecast at a press conference in Yerevan on December 18.

According to him, for Armenia, which became a member of the EAEU from  January 2, 2015, there was a five-year grace period for the  application of uniform customs duties on almost 950 names of  commodity products. During this period, it was planned to create  enterprises for the production of goods most sensitive to the  population. The MP recalled that the republic earlier than all other  countries of the Union joined the World Customs Organization (2002).  Then Armenia assumed obligations to apply two customs rates - 0% and  10%. Until the end of 2014, the republic received about $ 105 million  in customs duties, but how much it received after joining the EAEU is  difficult to say, since it also uses the EAEU's common cash desk  depending on the standards for the distribution of customs duties.  For Armenia, this norm is 1.22%. One thing is obvious, the MP  continued, so far the republic has received more funds from this cash  desk than it has allocated. From January 1, 2020, all privileges will  be excluded, which will inevitably lead to an increase in prices for  800 items of products. For insensitive goods, growth will be  insignificant, since prices have already risen over the past 1-1.5  years.

To recall, the leaders of the Eurasian Economic Union (EAEU)  following a meeting of the Supreme Eurasian Economic Council (EEC) in  Yerevan on October 1 approved a new norm for the distribution of  import duties between the countries of the Union. Earlier, the  Kremlin's press service published a list of documents adopted as a  result of the EEC meeting in Yerevan. Among them is the decision "On  Amending the Decision of the Supreme Eurasian Economic Council of  October 10, 2014 No. 79", which concerns the distribution of these  duties. In March 2019, Deputy Prime Minister of Belarus Igor  Petrishenko said that his country considered unfair the distribution  of import customs duties between the members of the Union within the  EAEU. Until now, the standards have been distributed as follows: for  Armenia - 1.22%, for Belarus - 4.56%, for Kazakhstan - 7.05%, for  Kyrgyzstan - 1.9%, for Russia - 85.26%.

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