Armenian EV owners decry 'excessive' vehicle tax assessments, await government fix

Electric vehicle owners in Armenia say they are being unfairly burdened by inflated property taxes calculated on advertised horsepower rather than actual engine output, forcing some to pay hundreds of thousands of drams for technical examinations to correct the figures.

Under current practice, vehicle property tax assessments are based on horsepower data derived from the Eurasian Economic Union (EAEU) system, which reflects manufacturers’ marketing specifications. Owners who wish to have their tax recalculated based on actual horsepower must undergo a certified technical examination costing between 200,000 and 250,000 Armenian drams.

Narek Ayvazyan, an EV owner who has raised the issue publicly, said a substantial portion of that fee – about 150,000 drams – is attributed to the installation of the EAEU’s GLONASS-based system, a satellite navigation platform developed in Russia. He argues that the system is not operational in Armenia and that its installation is no longer mandatory under EAEU regulations.

“Property tax is calculated according to advertised engine power under the EAEU framework, not actual horsepower,” Ayvazyan told Panorama.am on Saturday. “To base it on the real figure, you must undergo an expert examination. Of the 200,000–250,000 drams charged, around 150,000 drams is for installing the EAEU GLONASS system, which does not function here.”

He said that although a relevant EAEU decision removed the requirement for mandatory installation, organizations conducting examinations continue to include the charge.

Ayvazyan called on authorities to set a clear deadline for resolving the issue and to review the pricing structure for technical examinations. He also urged the government to consider reimbursing motorists who have already paid unjustified and excessive fees.

“If citizens have been overcharged, there should be a clear calculation and mechanism for refunding the difference,” he said. “If examinations are necessary, then the tariffs should also be revised, because the amount charged is incorrect and high.”

The issue has reached Armenia’s parliament. Babken Tunyan, a lawmaker from the ruling Civil Contract party and head of the National Assembly’s standing committee on economic affairs, said the government was working on a unified system that would eliminate the need for additional examinations.

“The government has discussed the issue with us and is now working to create a system whereby baseline data will be taken from the EAEU registry, making expert examinations unnecessary,” Tunyan said from the parliamentary rostrum. “The matter is in progress, and I believe a final solution will be reached in the coming days.”

However, months after the statement, EV owners say the problem remains unresolved, and no formal timeline has been announced for implementing the proposed changes.