YEREVAN, June 16. /ARКА/. Raising excise taxes on certain goods will not lead to significant inflationary consequences in Armenia, according to Central Bank Chairman Martin Galstyan.
“Such changes occur almost annually for certain types of goods. They are largely due to requirements and regulations within the Eurasian Economic Union, of which Armenia is a member,” Galstyan said at a press conference on Tuesday.
According to him, external factors, particularly the economic situation in Russia and developments in the Middle East, could have a much greater impact on inflation.
“We are more concerned about potential inflation risks associated with our economic relations with Russia, as well as developments in the Middle East,” the Central Bank chairman noted.
Galstyan emphasized that the developments surrounding Iran are of particular importance, as they could significantly impact global energy prices.
“Since the beginning of the conflict, the price of Brent crude oil has risen from approximately $60-65 per barrel to $80-82, and at certain points approached $100. Time will tell how this will impact domestic consumption in Armenia,” he said.
According to the head of the Central Bank, even if the situation is resolved diplomatically and events around Iran and the Strait of Hormuz develop positively, high oil prices could persist for several more months.
Armenian authorities are discussing increasing excise tax rates effective January 1, 2027. According to the Ministry of Finance’s draft, the changes could affect cigarettes and tobacco substitutes, alcoholic beverages, gasoline, diesel fuel, and compressed natural gas. The Ministry of Finance explains the initiative as a need to index excise tax rates in line with inflation.
