President of Armenia Armen Sarkissian has signed the law on property tax.
“The Law on Making Amendments and Supplements to the Tax Code of the Republic of Armenia was submitted to the President for his signature on June 26, 2020. The Staff of the President of Armenia thoroughly studied the Law and its potential social-economic impact, as well as the views of the professional community and society and the articles of mass media outlets regarding the Law and submitted the Law to the President of the Republic.
The President of the Republic held discussions on the Law with representatives of the professional community, including lawyers, financiers and economists. The President of the Republic is aware of the substantiations presented by the Government and the National Assembly regarding the Law. Although the President of the Republic has accepted them and has taken into consideration the impact of the Law on the social-economic situation of the society, the President of the Republic believes adoption of the law is premature.
Even if the Law isn’t going to be enforced immediately, the moral-psychological consequences and the financial-economic issues will remain for a long time. Based on various evaluations, if enforced, the Law may increase the tax burden of citizens and may particularly affect pensioners, multi-member families, single parents, people who have received property through inheritance or donation, but currently don’t have incomes, proprietors with real estate with mortgage and others.
Unfortunately, according to the Constitution, the President of the Republic does not have the constitutional power to return the Law to the National Assembly with his comments and suggestions for further consideration or the right to veto. According to the Constitution, the President of the Republic can either sign or not sign the law, but in either case, the law will enter into force, or the President of the Republic can apply to the Constitutional Court. According to the studies of the Staff of the President and lawyers’ evaluations, there is no prima facie problem with constitutionality of the Law. Consequently, the President of the Republic has signed the Law.
By signing the mentioned Law, the President of the Republic, within the scope of the powers reserved for him by the Constitution, will continue to follow evolution of enforcement of the Law and its impact on the public, and in case of emergence of possible problems with compliance with the Constitution, will not rule out the possibility of applying to the Constitutional Court.”