With the new real estate taxation system for individuals, it is planned to increase property taxes by about 5-6 times in 2021-2026: The member of the NA Armenia Faction Tadevos Avetisyan noted. The Armenia Faction proposes to suspend the final stage of the gradual increase in the real estate tax burden on citizens, with the exception of the case of taxation of real estate with a tax base of more than 200 million AMD, in which case it is proposed to leave the current regulations unchanged.
According to the rapporteur, the property tax on medium and low-value property will increase approximately 6 times, and the property tax on ultra-high-value property will increase only 4.5 times. According to the MP, issues related to the system need to be debated from the first to the second reading.
Tadevos Avetisyan also answered the MPs’ questions.
The co-rapporteur, the Deputy Chair of the Standing Committee on Economic Affairs Babken Tunyan mentioned that only if a community has its own resources can it be independent and free. “That is why, in parallel with reducing income tax, we placed emphasis on property taxes in time, so that firstly we ensure social justice through these taxes and secondly, communities have financial independence,” the MP emphasized and added that under the current regulations, the main burden falls on high-value properties. Babken Tunyan reminded that by the decision of the community, a citizen’s property taxes can be zeroed (or significant discounts applied). The initiative wasn’t endorsed by the Committee.
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The RA Government is against the adoption of the submitted draft law. The RA Deputy Minister of Finance Arman Poghosyan spoke about the necessity for changes implemented by the Government in the sector. According to the Deputy Minister, by the end of the reforms, in 2026, the share of the tax collected from real estate in the structure of the gross domestic product in our country will be 0.35%.
The MPs presented observations on the changes in the property tax. The opposition MPs spoke in favor of taxing super-expensive properties more.
Artsvik Minasyan spoke on behalf of the NA Armenia Faction. The Secretary of the Faction urged to vote for the initiative in order to debate it in detail from the first to the second reading.
The viewpoint of the NA Civil Contract Faction was presented by MP Babken Tunyan. According to him, the initiative cannot be adopted based on the presented justifications. The MP called on his colleagues to a vote against it.
The MPs adopted the legislative initiatives debated at the regular sittings by voting. The bill on Making Amendment and Addendum to the Tax Code of the Republic of Armenia authored by the Armenia Faction was not adopted.
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