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UITE CHIEF REITERATES THAT NEW PENSION SCHEME WILL NOT WORK IN ARMENIA
YEREVAN, March 17. / ARKA /. The executive director of the Union
of Information Technology Enterprises (UITE), Karen Vardanyan, has
once again slammed the government today for enforcement of mandatory
funded pension system arguing it would not work in this country and
saying also if the government persists in efforts to ignore popular
protests against the new pension scheme it would see a 'Maidan'.
"In the past all negative economic processes affected people
indirectly. This is the first time when the government 'picks'
the pockets of people. If it continues to insist on this reform,
sooner or later it will have a Maidan in Yerevan,," Vardanyan said
at a press conference on Monday.
According to him, the authorities are unable to adequately perceive
the public outrage, demonstrated by 'cynical statements' of the
ministries of finance and social and labor issues and the central bank.
Armenia's Constitutional Court suspended last month Article 76 of the
new law, which provides for penalties for failed or delayed pension
tax payments, and the third paragraph of Article 86, which obligates
employed citizens to choose a pension fund, among other parts of the
law. The Court says it will conclude the inquiry on March 28, 2014.
The constitutionality of the law was challenged by three opposition
parties in the National Assembly -- the Armenian National Congress,
the Armenian Revolutionary Federation, and the Heritage Party --
along with the usually pro-government Prosperous Armenia Party.
The new pension system requires that all Armenian citizens born
after 1973 pay social security taxes equivalent to 5 percent of their
monthly wages, which will be matched and doubled by the government.
That money has to be deposited with private pension funds licensed
by the government late last December.
Asked whether a package of draft legal amendments approved by the
government last week that would exempt newly established IT firms
employing up to 15 people from profit tax for three years and offer
also preferential income tax rate for their employees, could reduce
the protests of young people from IT companies against the pension
reform, Vardanyan said the draft law is for start-ups, while the
reform applies to well-established and successful firms.
The chairman of the Union of Domestic Producers, Vazgen Safarian,
said that the new pension scheme could be effective only it is not
mandatory. -0-
- See more at:
http://arka.am/en/news/society/uite_chief_reiterates_that_new_pension_scheme_will _not_work_in_armenia/#sthash.zLv3yJPe.dpuf
YEREVAN, March 17. / ARKA /. The executive director of the Union
of Information Technology Enterprises (UITE), Karen Vardanyan, has
once again slammed the government today for enforcement of mandatory
funded pension system arguing it would not work in this country and
saying also if the government persists in efforts to ignore popular
protests against the new pension scheme it would see a 'Maidan'.
"In the past all negative economic processes affected people
indirectly. This is the first time when the government 'picks'
the pockets of people. If it continues to insist on this reform,
sooner or later it will have a Maidan in Yerevan,," Vardanyan said
at a press conference on Monday.
According to him, the authorities are unable to adequately perceive
the public outrage, demonstrated by 'cynical statements' of the
ministries of finance and social and labor issues and the central bank.
Armenia's Constitutional Court suspended last month Article 76 of the
new law, which provides for penalties for failed or delayed pension
tax payments, and the third paragraph of Article 86, which obligates
employed citizens to choose a pension fund, among other parts of the
law. The Court says it will conclude the inquiry on March 28, 2014.
The constitutionality of the law was challenged by three opposition
parties in the National Assembly -- the Armenian National Congress,
the Armenian Revolutionary Federation, and the Heritage Party --
along with the usually pro-government Prosperous Armenia Party.
The new pension system requires that all Armenian citizens born
after 1973 pay social security taxes equivalent to 5 percent of their
monthly wages, which will be matched and doubled by the government.
That money has to be deposited with private pension funds licensed
by the government late last December.
Asked whether a package of draft legal amendments approved by the
government last week that would exempt newly established IT firms
employing up to 15 people from profit tax for three years and offer
also preferential income tax rate for their employees, could reduce
the protests of young people from IT companies against the pension
reform, Vardanyan said the draft law is for start-ups, while the
reform applies to well-established and successful firms.
The chairman of the Union of Domestic Producers, Vazgen Safarian,
said that the new pension scheme could be effective only it is not
mandatory. -0-
- See more at:
http://arka.am/en/news/society/uite_chief_reiterates_that_new_pension_scheme_will _not_work_in_armenia/#sthash.zLv3yJPe.dpuf