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The Armenian government endorsed a package of bills proposing a hike in state fees for construction permits in the country.

Introducing the draft amendments at a cabinet meeting on Thursday, Minister of Finance Tigran Khachatryan said that under the applicable law, those granted construction permits in Yerevan pay a state duty of 500,000 drams (around $1,300) per 5,000 square meters.

The new measure would increase the state fees from 2 to 10 times depending on the zone of construction.

"One of the reasons buildings remain unfinished is the low local fees. For example, a construction permit for 5,000 square meters in any zone in Yerevan costs 500,000 drams. We propose to increase the fees by 2-10 times," Khachatryan said.

If the construction of a building is not completed in time, developers will have to pay more fees to extend the permit, he added.

The proposed amendments apply to all types of buildings in Yerevan. The changes will not affect residential buildings in Armenia’s regions as well as all buildings in border settlements.