Former MP Roman Gotsiridze says raising the property tax exemption threshold alone will not solve the existing problems and has called for a comprehensive reform of the system. His comments followed a statement by ruling party parliamentary majority leader Irakli Kirckhalia that the government plans to change property tax rules and raise the current exemption threshold.
Gotsiridze argues that the tax rate should also be significantly reduced, noting that property prices have increased sharply in recent years due to inflation, currency depreciation and rising demand. He says maintaining the existing tax rates and valuation principles under these conditions is no longer reasonable.
He also identifies the lack of a unified property valuation methodology as a major problem. According to Gotsiridze, property owners effectively determine the value of their own real estate, resulting in cases where people living in the same building and owning similarly sized properties pay different amounts of tax. He warns that the current system also creates risks for people who are unaware of their tax obligations or cannot afford to pay.
Gotsiridze says a genuine reform should be based on four principles: a significant reduction in the property tax rate; a unified, objective and transparent property valuation methodology; an end to arbitrary differences in tax assessments; and stronger protection for socially vulnerable households. He argues that the reform should not be used as a political PR measure, but should create a fair, predictable and economically rational property tax system.
