According to the current regulations, physical persons pay the annual amount of vehicle property tax to the budget of the community of the place of their state registration until December 1 including of the tax year. Only after that, the technical inspection process is allowed. At one time, these two functions were combined so that communities could carry out property tax collections in full. On the one hand, the deadline for paying the property tax is December 1, on the other hand, when the citizens take the car for technical inspection, let's say in January or February, they are made to pay the property tax in full for the current year. Therefore, we suggest that it is mandatory to pay the debt of the previous year and not the amount of the current year. The Deputy Chair of the NA Standing Committee on Economic Affairs Babken Tunyan said this at the RA NA regular sitting on April 30.
The draft law on Making Addendum to the Tax Code of the Republic of Armenia authored by the MPs Babken Tunyan and Narek Zeynalyan was debated in the first reading.
The main objective of the draft is to provide more convenient, realistic and fair conditions for the property tax payers of vehicles.
According to Babken Tunyan, the Government presented one technical proposal regarding the draft, which will be corrected during the period from the first to the second reading. “The Government also proposed to consider the option to pay the debt not for the previous year, but for the current moment, or to pay the property tax not on an annual basis, but on a monthly basis,” Babken Tunyan detailed.
The member of the Standing Committee on Economic Affairs Davit Arushanyan, presenting the endorsement of the Head Committee, highlighted the proposed addendum in terms of coordination of community work.
The co-rapporteur, the Deputy Minister of Finance Arman Poghosyan noted that the Government’s justifications for accepting the draft are understandable and acceptable. He highlighted the legislative initiative, which, in fact, restores and strengthens the logic of the deadline set by the law regarding the property tax of vehicles, and creates a real opportunity so that the obligation to pay the current year’s tax due to a mere technical inspection does not apply.