COMMUNITIES TO CONDUCT ALL ADMINISTRATION RELATED TO PROPERTY AND LAND TAXES, ARMENIA’S DEPUTY MINISTER OF TERRITORIAL ADMINISTRATION SAYS

Noyan Tapan
Feb 19, 2010

YEREVAN, FEBRUARY 19, NOYAN TAPAN. "Both property tax and land tax
are local taxes, so all the administration related to them will
be conducted as mandatory authority by a community, that is by
local self-government bodies," RA Deputy Minister of Territorial
Administration Vatche Terterian said at the February 19 press
conference, when speaking about the new tax package submitted by the
Armenian government to the RA National Assembly. The package includes
a list of 8 new local taxes.

V. Terterian said that the community head is responsible for the
collection of land and property taxes making a considerable part
of internal revenues of a community budget. "In other words, they
should ensure efficient administration and have the opportunity to
communicate with unfair tax payers, to use penalties and fines,
if necessary also apply to court," the deputy minister noted. In
his words, they try to give efficient administrative mechanisms to
communities so that the latter as state government bodies can control
the community head and make inquiries in case when internal revenues
of the community budget are not ensured and normal activity of the
community is called into question.

As for criticism by ARF faction members who say that communities are
not prepared yet for such changes, V. Terterian said: "There are
communities whose work is far from being satisfactory for society
and us, so with the use of some mechanisms, we should make them work
efficiently in order to improve the situation."

To recap, the bill on amendments to the RA Law on Taxes proposes
establishing 10 local taxes, including property tax and land tax
as compulsory ones. The use and rates of the 8 other taxes will
be determined by the community council on the community head’s
recommendation.