Elderly Risk Losing Homes in Armenia

A property tax rise in Armenia risks forcing elderly people from homes they have lived in since the Soviet era and which have risen dramatically in value since then. The reform was signed into law this week and will bring thousands of homes that were previously exempt into the tax system. The hike penalises older people who are not rich but took ownership of apartments in the centre of the capital Yerevan when the country moved from Communism to a private property system. Under the current system, properties in Armenia are taxed based on their land registry value, which is often much lower than the market price. More than 60% of Armenia’s flats are tax exempt, according to lawmaker Babken Tunyan, who heads a parliamentary committee on economic affairs. The reform, which will be phased in from January, scraps an exemption for low-value homes and introduces a progressive tax based on market value. Armenian President Armen Sarkissian has described the move as “untimely” due to the economic woes caused by the coronavirus pandemic, but said he lacked the authority to veto it.