In 2024, residents of Armenia will see an increase in the cost of various services and products. The Yerevan municipality has introduced Red Lines, leading to an increase in the budget. The annual fee for using Red Lines in the central parts of districts A and B has risen significantly. While the municipality claims that the purpose of the fee increase is to reduce traffic congestion, it is apparent that people will be forced to pay more multiple times.

In addition to the increase in fees, residents will also face higher property taxes for real estate with low liquidity. The gradual increase in property tax began in 2021, with an interim period of 6 years to alleviate the burden. This year, 45% of the planned amount will be collected.

Starting from 2024, the excise tax on tobacco and alcoholic beverages will increase by ten percentage points, leading to higher prices for these products.

Furthermore, the cost of taxis is expected to rise in 2024, as online taxi services will be subject to taxation from September. Companies providing online taxi services will be required to pay an annual fee of 1 million drams. Additionally, a 2% tax will be charged for cash payments, increasing to 5% in 2026, and a 1.5% tax for non-cash payments, increasing to 4% in 2026.

Another change is the mandatory tax for rental apartments starting from December 1, 2023. The tax will be 20% of the rental income received, with a fine imposed for non-compliance. A fine of 500,000 drams will be imposed for the first violation, and 1 million drams for subsequent violations within a year.

In 2024, more residents will be involved in the declaration system as the tax authorities require income and expense statements from wage earners and self-employed individuals by May 1. The statements will be checked and verified to ensure compliance with tax regulations. However, a complete package of instructions for income and expense statements has not been published yet.

These upcoming changes in fees and taxes will have a significant impact on the residents of Armenia, and it is crucial for individuals to be aware of these developments.