Pashinyan Calls for Consultation

The government's goal is to establish mechanisms for progressive property taxation. This was stated today, December 28, by Prime Minister Nikol Pashinyan during a consultation held at the Government regarding the ongoing reform of the property tax system.

The meeting discussed the work conducted so far in this direction. Deputy Prime Minister Mher Grigoryan noted that in November 2019, the Republic of Armenia adopted a law on "Establishing a procedure for the cadastral assessment of real estate close to the market value for the purpose of property taxation," which is set to enter into force on January 1, 2021. The law establishes 20 zones for cadastral valuation and 9 types of property tax throughout the republic, which will enhance the targeting of taxation.

As a result, it is expected to introduce a unified and efficient assessment and taxation system for real estate in the republic. The exchange of ideas focused on future actions and steps. Questions regarding the methodology for implementing property tax system reforms in the context of the law's enforcement, the timeline for implementation, the effective correlation of market and cadastral values of real estate, the provision of software systems serving property taxes, and public representation were discussed.

The Prime Minister emphasized that the government's goal is to form mechanisms for progressive property taxation, ensuring a fair and equitable distribution of the tax burden, and that the reforms should be carried out under this logic. The Prime Minister instructed the responsible officials to continue their work and present proposals within a month regarding the modeled version of the anticipated changes and the timeline for implementation.