ArmInfo. Armenian authorities want to support investors who will invest in the development of greenhouses and the construction of water collection basins for agricultural purposes. At an extraordinary session of the National Assembly of the Republic of Armenia on April 7, draft amendments to the law "On Local Duties and Payments" will be discussed in the first reading.
As the author of the initiative, NA MP from the ruling Civil Contract faction Tsovinar Vardanyan, noted in her speech, the document was developed in response to the need to implement the principles adopted by the government in the field of agricultural policy. Currently, the construction of greenhouses and ponds is considered by current legislation to be the construction of structures. In addition to fixed rates, it also requires the application of a zoning coefficient. This creates significant financial liabilities for entrepreneurs, hindering the creation of greenhouses in the agricultural sector and the expansion of irrigated areas using advanced technologies.
In particular, for large greenhouse farms, such as a 1.5-hectare greenhouse, the local construction permit fee is now 5 million drams, up from the previous 100,000 drams. Although current legislation grants communities the right to calculate established state tax rates in rural areas using coefficients of 0.3, 0.5, or 0.75, and in urban areas using coefficients of 0.5 or 0.75, in practice, communities rarely exercise this right. Even with the aforementioned coefficients, the local tax is several times higher than the previous 100,000 drams.
The current situation creates obstacles to the implementation of the principles enshrined in the Strategy for the Main Directions of Economic Development of the Republic's Agricultural Sector, approved by government decree of December 19, 2019, and the goals set by the government program for 2021-2026.
The draft proposes reducing rates for the construction of greenhouses and agricultural reservoirs. Specifically, the following approach is proposed: for greenhouses and agricultural reservoirs, the local payment amount will be calculated at 400,000 drams per hectare, while for other common areas, the calculation will be based on the zoning coefficient defined in this clause, corresponding to the zoning of the building or structure's construction site.
