Jamanak: Construction Companies Find Themselves in Uncertainty

‘Jamanak’ newspaper writes that the announcement by Prime Minister Nikol Pashinyan regarding the income tax refund program for mortgage loans has caused significant concern among construction companies. Recall that from January 1, 2016, amendments to the Law on Income Tax came into effect, according to which the service fees of the mortgage borrower are paid by the state from the income tax amounts. This means that a citizen pays income tax, and due to this amendment, the tax paid is directed not to the state budget, but to the repayment of the loan.

Now it turns out that the government is considering suspending this program (of course, if a decision is made to suspend the program, it will not affect the users). On the other hand, construction companies have found themselves in uncertainty, as this amendment has significantly contributed to the development of the construction sector in Armenia. As a result, not only did construction begin to grow, but many citizens also became homeowners through this program, with the decisive factor being the possibility of repaying the mortgage loan through the income tax credit.

For more details, refer to today’s issue of the newspaper.