YEREVAN, MAY 27, ARMENPRESS. The Cabinet approved the bill on amending the tax code which envisages taxing real estate equivalently to wealth.

“Armenia is staying behind in the rank of 38 countries with the property tax/GDP indicator. This is the result of the tax being based on the cadastre value of real estate, which significantly differs from market value”, Finance Minister Atom Janjughazyan said.

“It is expected that this change will result in the property tax potential growing 4,3 times. This will allow communities to ensure better quality in solving their own issues,” he said.

The new mechanism is planned to be installed gradually within three years.

Editing and Translating by Stepan Kocharyan