«Ժողովուրդ». The property tax on luxury villas will increase eightfold

According to the newspaper «Ժողովուրդ», it has become known that the property tax on luxury villas will increase eightfold in 2021. Acting Chairman of the State Cadastre Committee Aram Karakhanyan informed «Ժողովուրդ» newspaper that for citizens living in 1-2 room apartments, the increase will be insignificant.

"The legal act regarding property tax has not been adopted in the second reading by the National Assembly, but rather a law aimed at aligning the cadastral value closer to the market value," said Karakhanyan, explaining that the property tax rate will be calculated based on the cadastral value and set by the Tax Code.

In response to the newspaper's observation that there is an opinion that by raising property taxes, the government intends to bring money into the state budget, Karakhanyan remarked that after the equalization of income tax, the rate was reduced, and “the property tax on higher-valued villas and new constructions should significantly increase, thereby closing that gap, meaning the shortfall in income tax will be compensated through the property tax of high-value properties,” the newspaper writes.