ArmInfo.The income tax refund program for mortgage lending, despite its economic and social benefits, has become a significant financial burden for the state budget. Haykaz Fanyan, head of the Modex consulting company, shared his assessment.
Assessing the program's costs, Modex notes that 305 billion drams were allocated from the state budget for the program in 2015-2025 alone. "According to estimates by Berlin Economics and Modex (as part of the German Economic Team (GET) program), approximately 1 trillion 98 billion drams will be refunded to program beneficiaries from the state budget of the Republic of Armenia between 2026 and 2044. This projection only includes beneficiaries existing as of the end of 2024," Fanyan notes.
The study also considered different scenarios, including exchange rate fluctuations and interest rate changes. According to these scenarios, the income tax refund from the state budget for mortgage interest payments between 2026 and 2044 could range from 1.037 billion drams to 1.273 billion drams.
