We think these are just two main reasons which are enough to completely exclude the VAT from this market. 1. With the current lamentable condition of housing in Armenia (especially in Yerevan), where about 80% of the buildings are in a state of increased risk of destruction from possible strong earthquake, probability of which is quite high for today. Of course, there is a need to replace old, not earthquake-proof buildings to new, earthquake-resistant ones, at a maximum possible low price. Besides other measures, the step to reduce indirect taxes (VAT) could quite significantly shrink the cost of housing construction, and thereby reduce the bar for possible home acquisition. 2. The second major problem relates to the legal development of small and medium companies in construction field. The problem is, that construction companies (especially licensed, as by Armenian VAT law while obtaining construction license companies automatically become VAT payers) can not conclude legal and complete contracts for construction and renovation works for private housing, because legal contracts increase the construction cost almost by 50% (including VAT, social payments, income taxes an so on) compared with the costs of "shadow work force" illegally and freely operates in this market without paying any taxes. The current reality, of course, puts licensed companies in one field of unequal competition with the shadow construction market, and does not allow creating normal conditions for the legal development and prosperity of companies, as well as implementing qualified construction. The result is; today the huge part of this market is in shadow economy, companies can not legally develop, the quality of work done is rather poor, while State Budget doesn't get lots of money. And who benefits? Today, our goal is to seek our readers' opinions, either through a simple voting or your comments. Given the fact that shadow economy in housing construction and renovation different extent exists in many countries, even in well developed ones, it is also interesting to find out opinions and to receive comments from all over the world to know the situation regarding to the issue.

As we have already noted in the article on 20% VAT excluding, today almost the entire market of private home renovation, as well as the most part of home new construction is in shadow market; i.e. we build and renovate our houses, substantially increasing the volume of the shadow economy of our state. The problem is that legitimate contracts with licensed construction companies increase the cost of works by nearly 50%, which compels us to find a way to conduct works in shadow, and, moreover, with absolute impunity, despite the severity of "dormant" low... Shadow home construction and renovation activity is also lucrative to the people with illegal income, which is highly undesirable for them to show shadow incomes in legal contracts. As we see, shadow construction first of all is beneficial for the customer, because it reduces the cost of the work, but disadvantageous to the State, because it loses money in the form of taxes. But as building portal, we particularly wish to acknowledge the inability of small and medium construction companies legally prosper in such circumstances, when they are in unequal competition with shadow workforce. The State should seriously think over that problem and solve it as soon as possible, but through lowering tax burden solely for that market, as no other measures will give positive results. That is very important to realize! But until that happy day, we all, willy-nilly become criminals, as we seriously violate the low of our Republic. Please, all interested persons, leave your comments, both from Armenia and around the world, as we are sure that even in well-developed countries a problem like this partly exists.

If you are a civilized one, then, certainly, no! But don't give a negative answer, since it does not make you as such... In the existing situation of almost complete shadow home construction and renovation, when companies have to conduct works without legal Contracts with customers, it will be deficient to talk about satisfactory quality, even performing a highly qualified job (in case you are lucky). There are no guarantees for both parties; neither for payments and work quality nor for deadlines and so on! All the problems are being solved on the basis of personal mutual trust, or in best case- based on previous customers' recommendation. Talking about satisfactory quality in this market circumstances is uncivilized at least, until such situation is continuing.

The construction of Piazza Grande complex, located on Vazgen Manukyan street, was completed. The complex is adjacent to the main square of Yerevan- Republic Square and that is probably gave rise to building name (Piazza Grande means Large Square in Italian). Today, on September 20 Mayor of Yerevan Gagik Beglaryan and CEO "Renco" holding (www.renco.it) Giovanni Rubini held ribbon cutting ceremony to celebrate an official opening of the complex. Piazza Grande consists of 2 level parking garage, 3-storey business center with a glass roofed patio with (atrium) and the top 7 floors designed for residential area. The construction lasted 2.5 years and cost $50 million. The building was constructed on-site of demolished historic-cultural monument of 1842, what was purchased by "Renco" from Ministry of Defense in 2007. We would like to highlight the high quality of work performed during the construction of "Piazza Grande", which has undertaken "RencoArmestate" LLC construction company One should admire the high culture of the construction work done by this company during the entire construction process that is naturally due to increase in the cost of the final product. After 2009 "RencoArmestate" LLC led in the ranking of the largest construction companies of Armenia.

To the delight of all owners of coastal recreation areas, restaurants and cafes, Arpa-Sevan tunnel will be closed for reconstruction works, and the water of lake Sevan will not be able to rise; it will even decrease by 20 cm by this winter! The tender for work implementation won the same named company Arpa- Sevan, which offered the lowest price- 11.8 billion AMD (about $32 million).Financing of the reconstruction works will be implemented by the Government of Armenia with support of Development found of Abu-Dhabi, OAE. The construction of 48.2 km Arpa-Sevan tunnel was started in 1961 and completed in 1981. The main contractor was "Arpasevanshin" company, which was the predecessor of Arpa-Sevan company. After commissioning of Arpa-Sevan tunnel, as an extension of Sevan lake rescue project Vorotan tunnel was built ( 21.6 km) to transfer water from Vorotan river to Arpa river. The renovation comes in handy not only for off-shore entrepreneurs, but for Government as well, because it will gain time to correct past mistakes. Water level rising to 1901m mark above the sea (it is provided to raise it to 1903, 5m+ 1,5m for waves by 2032), caused unpredicted serious problems with coastal flooding. It is unclear how forests, pipelines, buildings and the roads were under the water and why water inflow from Arpa-Sevan tunnel and releases from the lake were not regulated to prevent that? The State suffered enormous damage, as cleaning already flooded areas will cost much more. In early 80's integrated activities were developed for gradually coastal cleaning up (to the extent of flooding) to 1905 m from buildings, trees and other vegetation, as well as total demolition of fertile topsoil. There was provision for creating new forests on new, higher marks, and constructing new roads and buildings. Note that lake Sevan before the drawdown of its water resources had high water quality and a unique fish fauna, consisting only of valuable fish species. As it was correctly forecasted even 40-50 years ago, at current low water level Sevan will transform from "trout" lake into the "carp" and later into the swamp! To save the lake it should risen at least to 1903.5 m, and has to be accompanied with the full implementation of all envisaged activities for bottom clearance, as increasing the level without cleaning will lead to the opposite-swamping result.