PM: “The Government’s goal is to develop progressive taxation mechanisms for real estate”
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Prime Minister Nikol Pashinyan today held a consultation on the property tax system reform.
With reference to the work done so far, Deputy Prime Minister Mher Grigoryan noted that the RA Law On the Procedure for Market Value-Approximated Estimation of Real Estate was adopted in November, 2019, which will come into effect on January 1, 2021.
The law defines 20 cadastre zonings and 9 types of property tax across the country to make taxation more targeted. As a result, a unified and effective system of real estate taxation and appraisal will be established in the Republic of Armenia.
A number of proposals and recommendations were voiced during the exchange of views that followed. The meeting went on to discuss the methodology of reforming the property tax system in the context of new regulations, deadlines for introducing the new system, effective ways of harmonizing property’s market and cadastre values, development of supporting software for servicing the mechanism, awareness raising measures and other issues of topical interest.
Prime Minister Pashinyan emphasized that the government’s goal is to develop progressive real estate taxation mechanisms in order to ensure fair and adequate distribution of the tax burden. The Head of Government tasked the officials in charge to continue working in this direction and submit recommendations within a month’s time concerning the timeframe of introduction and the modeled option of the proposed changes.