Opposition’s tax relief proposal turned down

PanARMENIAN.Net - The Armenian government has rejected a bill proposed by the Armenia faction, which aimed to ease the newly introduced property tax system.

Prime Minister Nikol Pashinyan stated that the government has made a crucial and complex decision regarding property taxation and emphasized that there will be no compromise on this matter.

“No matter how difficult, unpopular, or challenging this decision is, we have made it and will stand by it firmly. Sorry, but there will be no compromise here because we are forcing communities to develop, to improve their living conditions, and to rise above rural underdevelopment,” he said.

Finance Minister Vahe Hovhannisyan explained that the bill proposed limiting the tax increase for properties with a taxable base exceeding 200 million drams, applying only 75% of the tax rate in 2025 and 100% from 2026 onward.

The gradual property tax increase began in 2021, with rates rising annually until reaching 100% in 2026. This means that over the next two years, the tax burden will increase by an additional 50% compared to 2024.

Hovhannisyan stressed that the government could not accept the opposition’s proposal, arguing that the existing taxation system ensures fairness and balance.

“We have opted for the fairest and most proportional taxation solutions. Our analysis shows that residential properties valued up to 25 million drams make up over 85% of the total housing stock. For this group, the tax burden will be minimal—no more than 20,000 drams per year. Meanwhile, properties valued between 25 and 200 million drams constitute 11% of the market, with an average annual tax increase of around 50,000 drams,” he noted.

Official data indicates that 432,000 apartments will be taxed under the new system. Of these, 402,000 will see annual property taxes not exceeding 30,000 drams. When the law is fully enforced in 2026, annual property tax revenues will surpass 40 billion drams, compared to the current 9 billion.