Wednesday, September 4 2024 13:05

ArmInfo.A political decision has been made in Armenia not to revise cadastral prices close to market prices, which are supposed to be used for taxation, at this stage. This was stated by the head of the RA Cadastre Committee Suren Tovmasyan at a meeting of the NA Standing Committee on Economic  Affairs on September 4. 

According to Tovmasyan, despite the rise in prices in the real estate  market after 2021, as well as despite the requirement for revaluation  in 2023, which was supposed to become the new tax base starting in  2024, the authorities decided to take a break. <The Cadastre  Committee did not revise real estate prices, realizing that the  market is very dynamic and still unstable at this stage:, - he said.

Perhaps a new revaluation of real estate necessary for determining  the tax base will be carried out by 2026, the head of the Committee  said.

Since January 1, 2021, residents of Armenia began to pay property tax  several times more, since the procedure for calculating it has  changed: it is calculated based on the cadastral value close to the  market value. In addition, since January 1, 2021, property tax has  become mandatory for all owners, regardless of the value of the  property. 

Before that, owners of real estate worth up to 3 million drams (more  than 6 thousand dollars) were exempt from taxes. In addition, if  earlier land plots and buildings were assessed separately (buildings  were subject to property tax, plots - land tax), now a single  property tax is levied. And to sweeten the bitter pill, the  government announced that the implementation of the tax innovation  will be carried out in stages, over 6 years. 

Thus, in 2021, citizens began to be charged only 25% of the envisaged  tax, in 2022 - 30%, in 2023 - 35%, in 2024 - 50%, and in 2025 - 75%,  and finally, from 2026, the tax will have to be paid in full. It was  noted that as a result, the potential for collecting real estate tax  will increase by an average of 4.3 times.  According to the  authorities themselves, the fees will increase from the initial 9  billion drams to 40 billion drams already in the 4th year of the  implementation of the new taxation system, and from 2026, when the  tax amount fully comes into force, the fiscal effect will be up to  37-38 billion drams every year. It was also reported that at least  once every two years, the Cadastre Committee will review real estate  prices in Armenia in order to determine the amount of real estate tax  for this property on this basis.