Local tax rate changes are expected in the upcoming legislation. During a meeting of the Yerevan City Council’s Commission on Budgeting and Revenue Management on December 26, Acting Mayor Arman Julhakyan presented one of the most talked-about changes. The first major change involves implementing a progressive tax rate for cars and introducing a zoning system, dividing the city into two zones: A and B, representing the Center and Arabkir areas. Additionally, parking fees for each zone will be determined.

Zone A will have rates set at 300 drams per hour, 2,000 drams per day, 5,000 drams per week, 18,000 drams per month, and 160,000 drams per year. On the other hand, Zone B will have proposed rates of 200 drams per hour, 1,000 drams per day, 2,000 drams per week, 4,000 drams per month, and 24,000 drams per year, according to Arman Julhakyan.

According to Julhakyan, the calculation of the 160,000 drams fee for Zone A was based on international experience, specifically Tiblisi. For example, the annual parking fee in the center of Tiblisi is 800 lari, while in Moscow it is 4,000 rubles. As part of the new legislation, the municipality proposed free parking for 15 minutes and extended the period of free parking from 24:00 to 9:00, starting from 22:00 to 9:00, giving residents the opportunity to park for free until 10:00 pm. Furthermore, there will be free parking in red lines after a certain time. The aim of this model is to limit parking based on time and day, rather than having a fiscal purpose, explained Julhakyan.

In relation to this decision, Tigran Avinyan addressed the citizens of Yerevan, acknowledging that not everyone may agree with the changes. However, he assured them that he is taking full responsibility for the decision and considers it a responsible one. The draft was discussed and approved by various factions, including “Republic,” “National Unity,” and “Citizen Contract,” while “National Progress” and “Mother Armenia” factions did not participate in the discussion. The draft received approval from 32 factions, with 3 abstentions.

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