PRICES OF GARMENTS WENT UP

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31 March, 2008

After the presidential elections prices of garments have significantly
increased. Vendors state the reasons for the increase are high
custom taxes.

Alvard, who sells clothes at the "Russia" trade center, complains
that the clothes imported three months ago were taxed 1 dollar and
6 cents per kg.

Further on, the tax rose to 2,5 dollars and after the elections to
4 dollars. "The most curious thing is our authorities can forge an
explanation for everything.

But explanations are of little comfort to us – we hardly coped
with previous taxes, and the present one is going to be an ordeal",
she said.

Another trader, Emma, says an attempt was made to explain the tax
increase by the depreciation of US dollar, both in Armenia and
abroad. "But there are people abroad who keep in touch with us, and
say the dollar change rate has remained the same. Besides, it does
not explain the increased prices of goods produced inside Armenia",
she said.

According to another point of view the reason is a high VAT, "It is
as high as 20%, leaving behind even Russia with its 15%. People from
abroad say it means you’ve got good economic conditions, which is
hardly true", they say.

The traders have been embarrassed also by the amendments to the Law
on simplified taxation. "They say our business doesn’t fit to the
simplified taxation. But why, we are minor businessmen as well.

In that case, one has to have undeclared income sources to manage
all that mess".

From: Emil Lazarian | Ararat NewsPress