If the revenue from the sale of a private property is less than 2.4 million ALL, the tax needed to be paid to the state will be 23% of the total value, compared to 15% which is the current tax system.

In the new draft bill it also says that the profit that will be made by owners will be taxed progressively.

In cases when the profit from this sale is less than the above-mentioned 2.4 million ALL, the tax requirement will be 13%.

However, these profits will also be added to the seller’s income, business or other financial resources and if the final sum surpasses 2.4 million ALL the tax will still be 23%.

When profit from the property sale will exceed 24 million ALL the tax requirement will be 28%.

At the moment, the state taxes the difference between the value of the sale and the value of the property when it was bought, at 15%.

If a house was bought years ago for 5 million ALL and it gets sold today for 15 million ALL, the home owner will have to pay 1.5 million ALL in taxes.

With the new draft bill, the owner would have to pay 2.3 million ALL.

The draft is in the phase of consultation and is expected to be presented by the ministry of finance in June, after which it will be forwarded to Parliament for approval.