ArmInfo.The planned increase in property tax is a logical continuation of the lowering of the tax burden regarding income tax that has occurred since last year. A similar opinion was expressed by ArmInfo Chairman of the Standing Commission on Economic Affairs of the "My Step" faction Babken Tunyan.
"We did this in order to increase the degree of financial independence of the communities. Income tax goes fully to the state budget. Meanwhile, property tax is paid to the community budget. Communities will have more funds at their disposal. Accordingly, they will be able to solve their own problems on their own. We want to exclude a situation in which a deputy will raise in parliament, for example, the issue of repairing a kindergarten in his district, "he stressed.
Such issues, according to Tunyan, will be decided by the communities themselves. Including with the help of funds received from property taxes. He also noted that communities can provide benefits to people who are unable to pay property tax, cancel it, or defer it. This provides for 10% of the revenue of community budgets. The most important thing, in his opinion, is that all this will be done on the spot, independently. The parliamentarian emphasized the gradual nature of the increase in the tax burden on property. In this light, he noted that in the first 2-3 years it will pass almost imperceptibly for citizens.
However, Tunyan attaches particular importance to the revision of the cadastral value of real estate in the direction of increase, close to market value. "Thanks to this very cadastral value, land with a market value of 10 million was estimated at one million, and it was alienated, and it was not clear to anyone at all for half a million. State and communal property was squandered over the years. Revision of the cadastral value allows us to streamline and prevent the sale of state property for a penny. Moreover, from now on it will become impossible to lease land for thousands of dollars, and to show 100 thousand drams, "the deputy emphasized.
Tunyan considers social justice to be another positive element of the innovation. So, if real estate worth up to 10 million drams will be taxed at 0.05%, then real estate worth more than 200 million will be taxed at 1.5%. The use of such a progressive scale, he said, is designed to ensure social justice.
Note that the new government made a conceptual decision to reduce income taxes. Thus, the income tax in Armenia is calculated on a flat scale and since 2020 has been 23% for all working citizens. Canceled rates of 28% and 36% on high salaries. In until 2023, it will gradually decline to 20%. Income tax from 2020 will also drop to 18%. Instead, in 2021-26. on a progressive scale, the real estate tax will gradually increase.