2022 January 4

Daily news wrap-up

News - Jan/4/2022: (1) Flat income tax is lowered (2) Armenia using locally-made Sputnik Lite (3) Armenia-Turkey trade stats; Did embargo help or harm? (4) Infrastructure projects (4) Himnadram building important roads & housing in Artsakh (5) Anti-corruption (6) Top messaging app (7) Municipal elec
by ar_david_hh

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This is your 9-minute Tuesday briefing in 2336 words.

income tax is lowered in Armenia (with an asterisk)

In 2019 Armenia adopted a law to switch from progressive to flat tax. The flat tax rate was set to decrease by 1% every year, to 20% by 2023.

On January 1, the income tax rate dropped from 22% to 21%.

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The rate of Social Security Payments increased by 1%, to 4.5%. Social Security Payments are taxed from workers born after 1974. Those born before 1974 can join the system. It's meant to guarantee retirement pensions.

The Social Security Payment rate is actually 10%, but the government has been subsidizing most of it:

2020: worker 2.5%, govt 7.5%

2021: worker 3.5%, govt 6.5%

2022: worker 4.5%, govt 5.5%

The aforementioned is for workers earning under $1,000/mo. The rate is different for high earners.

https://armenpress.am/arm/news/1072213.html https://www.petekamutner.am/Content.aspx?itn=tsTISocialSecurityPayment https://armenpress.am/eng/news/1072213.html

IRS chief: The coming years will be crucial in terms of having a new quality customs service

Badasyan: We mark the 30th anniversary of the customs service. The customs infrastructure continues to undergo reforms to simplify and digitize, to make it easier for businesses and reduce corruption.

Especially in recent years, systemic reforms have been implemented with the cooperation of international partners. In the coming years, we will have higher standards. There will be a new system to hire customs officers. //

Pashinyan: Armenia could gain a much greater transit potential if the regional communications are unblocked. The reforms in Customs Service are very important for Armenia to be an attractive transit state. The quality of Customs Services is just as important as physical roads.

Some of the recent reforms include modernizations in Bagratashen, Gogavan, and Bavra checkpoints.

The Northern Foreign Economic Activity Service Center opened in Gyumri. [The $10M construction started in 2019]. It uses modern infrastructure and work style to handle customs clearance of vehicles.

The modernization of the Meghri checkpoint is next. //

https://armenpress.am/arm/news/1072199.html https://armenpress.am/arm/news/1072227.html

anti-corruption: authorities press bribery charges against several IRS agents and business owners

NSS & ACC report: Several IRS agents were caught taking ֏1.7M in bribes from businesses.

Gagik Hakobyan, a senior officer at IRS's intel department, took $200-$600 bribes in September from several businesses to ignore their violations. He then conspired with his boss and another colleague to take a $2,000 bribe in October.

Gagik Hakobyan, his boss, and another colleague are charged with multiple criminal counts.

5 business owners are also charged with bribing the IRS agents. //

https://armenpress.am/arm/news/1072252.html

update: the new demographic-boosting program to pay $100/mo for 3rd+ childbirth

For every third and subsequent child born between 2022-2026, parents will receive $100/mo for each child until they turn 6.

Labor & Social Ministry official: We'll analyze the results 4 years later and decide whether to extend the program or implement something else. The goal is to improve demographics through more births.

In the last few years, there has been a 5% annual increase in the birth rate of three or more children. The goal is to increase the average growth to 8% during the program.

Low-income families who currently receive aid from Paros won't be cut off because of that $100/mo. There will be an individual approach to each family. There could be an impact on the size of Paros aid, but in the end, they will receive more aid than they do today. //

https://youtu.be/X6hlWw6_ods https://armenpress.am/arm/news/1072231.html

update: shops are no longer allowed to display cigarettes

Details in yesterday's post. A few customers were taken by surprise about the new law that bans the public display of cigarettes. Shop owners aren't even allowed to open the cigarette stand to allow the customer to look and select the cigarette. The customer must give the name of the product they want to purchase. Some shop owners are annoyed by the new restrictions but they were prepared because there was a preparatory phase under the law.

https://youtu.be/Epo_DOaYCXw https://www.armtimes.com/hy/article/228638

education courses to protect women's rights in Yezidi communities

Education Ministry: We are helping the Sustainable Development Initiative NGO to implement courses to ensure continuous primary-secondary education for ethnic Yezidi girls and women, aimed at protecting their fundamental rights and freedoms.

Within the next three months, 50 teachers and social workers from several Yezidi communities will be trained on how to combat discrimination against women and girls. //

Full: https://www.armtimes.com/hy/article/228610

VIDEO: Գործի մարդը՝ սառույցի վրա

Mini-documentary about figure skating, featuring Alvina Badalyan.

https://youtu.be/nl6zDk5LiZU

www.civilnet.am/news/645533/գործի-մարդը՝-սառույցի-վրա/

Tsovak-Akhpradzor road is ready

The construction of the 14.4km road that connects Tsovak-Lchavan-Makenis-Akhpradzor settlements was completed in late 2021. The World Bank had allocated $2.8M.

Tsovak is on Lake Sevan's southern shore. The road stretches south and connects four villages in a straight line.

https://armenpress.am/arm/news/1072232.html

Government about last year's notable infrastructure programs:

1. 570 km roads were built as part of 678 co-subsidy programs alone

2. North-South program resumed

3. Construction began for Armenia's first sanitary landfill

4. Agreement was signed to help MASDAR build a 200MW solar farm

https://www.armtimes.com/hy/article/228643

All Armenia Fund: there are active investments worth $70M in Artsakh and $5M in Armenia right now

51 km roads are being built in Artsakh. A dozen buses were donated to service settlements.

Artsakh's Infrastructure Minister Khanumyan: The construction of a new road for Martakert is important. The works began last year with the help of Himnadram. There are also several important village roads, for example in Patara direction. //

֏28 billion is allocated for housing construction. Around 300 apartments were built in the past 7 months. The first recipients got the keys recently.

More about programs in Syunik, Gyumri, etc.: https://youtu.be/1MBuv9v5fMM

https://www.1lurer.am/hy/2022/01/04/Մոտ-7-մլն-դոլար-ՀՀ-ում-70-մլն-էլ՝-Արցախում-«Հայաստան»-համահայկական-հիմնադրամի-2021-ի-ներդրումները/637129

1995-2020 statistics about Armenia-Turkey trade

Armenia has imported $3B products from Turkey in the past 25 years and exported only $50M.

The imports sharply increased after 2005 and eventually reached >$200M/year. It peaked in 2008 and 2019.

Turkish products mainly come through Georgia because the border is closed.

Stats: http://www.aniarc.am/2021/12/29/armenia-turket-turnout-3-billion-2020/

the ban on Turkish imports led to higher prices, and they still entered Armenia via "detour": Deputy chief of Parlm. Economic Committee

After the war, the Pashinyan administration imposed a 6-month ban on most Turkish products. It was extended once but was recently allowed to expire amid attempts to normalize relations with Turkey and internal complaints about the embargo's collateral damage in Armenia.

QP Babken Tunyan: There was a disagreement whether the ban was helpful. The government decided to lift it. The ban, in fact, did not serve its purpose. Turkish products were being imported in a concealed manner anyway. It contributed to the price increase of many products.

If we view this from the point of view of patriotism, the question we should ask is why is there a demand for Turkish products in Armenia. Everyone was boycotting Turkish products during the war. Why did consumers change their habits?

If a certain product is in demand, it will find its way in. The artificial restrictions are unnecessary. It's practically impossible for customs to ban the import of Turkish products if they are imported through various methods. The end result is we still have the products (clothes, appliances, etc.) but at a higher price because their import process was more cumbersome.

The ban was always meant to be temporary and on certain types of products only. Raw materials were never banned. Some non-raw-materials had to be excluded from the ban after we learned that there weren't alternatives.

If we are banning Turkish products to promote local production, we would need to impose similar bans on several other countries. The question is, will that make Armenian production more competitive, or less?

Turkish clothes were officially banned, but Turkish fabric, buttons, and other elements used for sewing clothes, were not. And since the general price had risen, they were sold at a higher price in Armenia. //

Economy Ministry: The temporary ban had both positive and negative consequences. It boosted several local manufacturers and agricultural producers. The main negative effect was the impact on inflation, which was especially evident in a number of widely consumed product groups. There were also many local business owners who asked us to lift the ban. //

https://armenpress.am/arm/news/1072228.html

US State Department and Turkish MFA discussed the efforts to normalize Armenia-Turkey relations

Blinken and Çavuşoğlu spoke over the phone. They discussed various topics, including the appointment of special envoys to normalize AM-TR relations.

Turkish MFA: We see positive messages coming from Armenia about normalizing the relations

MFA Çavuşoğlu said he recently met MFA Mirzoyan in Europe and has established friendly relations. Çavuşoğlu also spoke positively about the appointment of QP Ruben Rubinyan [a diplomat who often represents Armenia in Europe] as Armenia's special representative, adding that Turkey's representative to Council of Europe is familiar with Rubinyan.

In 2017-2018 Rubinyan conducted studies within the framework of Hrant Dink Foundation's Armenia-Turkey experience exchange project at Sabanci University. His research focused on the impact of NGOs on Turkey's democratization process.

Turkish "Pegasus" airline officially applies for a permit to conduct flights to Armenia

Armenia's Civil Aviation Committee will discuss issuing a permit for Istanbul-Yerevan-Istanbul flights. Similarly, Armenian Flyone airline recently applied for a permit to fly to Turkey.

https://youtu.be/RtYYFGsgQKk https://armenpress.am/arm/news/1072228.html https://armenpress.am/arm/news/1072195.html https://armenpress.am/arm/news/1072217.html

WORLD MAP: Telegram is the most popular messaging app in Armenia

According to SimilarWeb, Telegram overtook Viber as the most used in Armenia.

WhatsApp dominates the world.

Facebook Messenger is king in the US, Canada, and some EU countries.

Viber still leads in Ukraine, Bulgaria, Greece.

Telegram is most popular in Belgium, Armenia, Azerbaijan, Kazakhstan, Latvia, Belarus, Joran, Kuwait, etc.

South Korea uses Kakao (laced with Kpop, probably).

https://www.similarweb.com/corp/blog/research/market-research/worldwide-messaging-apps/ https://arka.am/en/news/technology/telegram_becomes_most_popular_messaging_app_in_armenia_/

authorities prepare charges after a brown bear cub is trapped and killed in Ohanavan

Ohanavan resident placed an improvised metal trap in a land near his house. A bear cub was trapped and choked to death. The police launched an investigation.

Nature Ministry: The encroachment on any species registered in the Red Book is unacceptable. Every animal is an integral part of our country's ecosystem. The law envisages criminal punishment for such acts. //

https://www.armtimes.com/hy/article/228573

Parliamentary Defense & Security Committee still doesn't have a deputy chief

Kocharyan-ARF's HD alliance nominated HD MP Ghazinyan 14 times. He was rejected by the ruling party over "lack of knowledge about the army".

HD decided not to appear for re-nomination during the past two sessions, claiming Ghazinyan's nomination "is still in effect". The ruling party disagreed, saying they should appear and nominate someone during each session.

The ruling party will likely nominate its own candidate soon, after consulting with the legal department to clarify rules.

This Committee will be part of the group that will investigate 2020 war episodes. The role of deputy chief is largely ceremonial.

https://armenpress.am/arm/news/1072226.html

update: December's elections were too close in Parakar, Vardenis, and Vedi

Aprelu Yerkir party won the most votes in Parakar but didn't cross 50%. QP and its local ally formed a coalition to appoint a mayor but AU "blocked" their attempt. They accused each other of violating procedures. The case had reached the court.

The city council will hold a new session tomorrow to officially appoint a mayor.

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A similar situation was in Vardenis. QP won the most votes but didn't cross 50%, so local forces "Aharon Khachatryan" and "United Vardenis" formed a coalition to appoint a mayor.

The acting mayor did not allow council members to enter the building to finalize the appointment of a new mayor, saying that the election results are still being challenged in court.

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In Vedi, none of the parties had crossed 50%, and no coalition was formed. QP and Aram Sargsyan's Republic withdrew their mandates to trigger new elections. Today the government certified the withdrawal and new election process.

https://armenpress.am/arm/news/1072208.html https://www.armtimes.com/hy/article/228642 https://armenpress.am/arm/news/1072269.html https://factor.am/460506.html https://factor.am/460517.html

COVID stats

4k tested. 90 infected. 203 healed. 3 deaths.

Armenia begins using locally manufactured Sputnik Lite vaccine as a booster

Russia recently passed the technical tools and info necessary for Armenian firms (Likvor) to produce the vaccine locally. It underwent experiments and quality checks and is now being used as a booster shot, announced Healthcare Ministry today.

Adult residents with chronic illnesses are advised to get a booster six months after their second shot.

Sputnik Lite is the same as Sputnik V's first dose and is being used exclusively as a booster.

39% of Gegharkunik residents are fully vaccinated

Over 97% of Gegharkunik government workers, police officers, medics, and teachers are vaccinated.

Lowest vax rate:

Vardenik 26%

Dzoragyugh 26.7%

Gavar 27.1%

Highest vax rate:

Ddmashen 78%

Lusakunk 65%

Lchap 64%

https://armenpress.am/arm/news/1072204.html https://armenpress.am/arm/news/1072222.html https://armenpress.am/arm/news/1072225.html

what do classical music and IT have in common?

'Narrator: AI and shit.

The State Symphony Orchestra will work with the IT industry and telecoms to popularize classical music in Armenia and promote Armenian musicians abroad.

Team Telecom, PicsArt, ServiceTitan, and others signed a cooperation memorandum with the orchestra.

>The State Symphony Orchestra of Armenia is known for its innovative projects, the use of high-tech elements in classical music, and artificial intelligence, which are receiving a great response all over the world.

https://armenpress.am/arm/news/1072249.html

Armenia's Emin Ohanyan wins European Youth Rapid Chess Championship

The championship was held in Serbia last week. Ohanyan won with 7.5/9 points.

http://chess-results.com/tnr595251.aspx?lan=1&art=1&rd=9 https://www.armtimes.com/hy/article/228616

protests erupt in Kazakhstan after gov't lifts price caps on petroleum gas

Thousands of people across several cities protested against the price hikes. The government said the move was necessary because of high production costs.

>The price had previously been regulated, but officials said artificially low prices were making LPG production infeasible.

President Tokayev: We'll see if anything can be done about it. Please behave reasonably. //

https://www.reuters.com/markets/commodities/protests-erupt-kazakhstan-after-fuel-price-rise-2022-01-04/

where is James?

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James Webb telescope was launched recently as the big brother of legendary telescope Hubble. It has to unfold in space and fly to a predetermined destination before sending back data. You can track the progress here:

https://www.jwst.nasa.gov/content/webbLaunch/whereIsWebb.html The accused are innocent unless proven guilty in the court of law, even if they "appear" guilty.

more

The news in русский (by Impossible-Ad-).

News archive: http://www.armeniapedia.org/wiki/Daily_Anti-Corruption_Reports Donations: soldiers' families, humanitarian aid, US tax-deductible donation.

The accused are innocent unless proven guilty in the court of law, even if they "appear" guilty.

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Link to original report and comments: https://www.reddit.com/r/armenia/comments/rw4pq8/news_jan42022_1_flat_income_tax_is_lowered_2/