YEREVAN, April 7. /ARKA/. In 2020, Armenia’s State Revenue Committee refunded a total of 13.3 billion drams in individual income taxes to mortgage borrowers so that they could use the money to pay interests on their mortgage loans, Deputy Finance Minister Arman Poghosyan said during a meeting of the parliamentary committee on economic issues on Wednesday.
Under the Armenian law, the home’s price should not be more than 55 million drams. Also, the refunds should not be more than 1.5 million drams per quarter.
According to Poghosyan, when the law went into effect in 2018, only 253 million drams were refunded, while in 2019 the amount surged to 7.9 billion drams and to 13.3 billion drams in 2020.
According to him, at the end of 2020, there were 12.3 thousand beneficiaries that enjoyed this benefit. He said according to the ministry’s forecasts, this growth trend will continue in the next 3-4 years, which may turn out to be a heavy burden on the budget.
Earlier, Finance Minister Atom Janjughazyan indicated that the ministry may terminate the privilege. He said the decision was made after following a dramatic decline in the construction sector. It was meant to stimulate the industry and help revitalize the economy.
According to him, today there are no countries that stimulate the construction sector this way, since the sector is considered to be quite profitable everywhere. ($1 – 535.11 drams). –0–
