DISY LEADER Averof Neophytou’s radical proposal for slashing the state’s immovable property tax (IPT) by 75 per cent this year, and scrapping it altogether in 2017, was passed by a majority vote in Thursday’s parliamentary plenum.
The vote followed days of hectic haggling between the government and parties, each of which seemed to have its own proposal on the matter.
Ruling DISY proposed a 75 per cent discount on payable IPT for this year, and doing away the tax altogether in 2017. Its bill stipulated that IPT for 2016 would be based on 1980s prices.
The proposal was eventually backed by EDEK, DIKO, and the Solidarity movement. It calls for payment of 25 per cent of the IPT each property owner was asked to pay in 2015, provided payment comes by October 31, 2016.
If the payable IPT is paid after this date and before year’s end, a 2,5 per cent penalty will be slapped onto it, bringing the amount due to 27,5 per cent of last year’s dues.
Payment after year-end will see a 10-per-cent penalty imposed on the amount payable.
The proposal garnered 29 votes of support, and was opposed by AKEL’s 18 votes, as well as ELAM’s two.
The Citizens’ Alliance three deputies, as well as the Greens’ two, abstained. A government bill, which was rejected by the plenum, envisaged a flat rate on property values of 2013. The finance ministry’s final proposal was a 0.035 per cent flat rate which would have raised €45m. Of this, the central government would take €30m and the remaining €15m would be given to local authorities which would have to scrap their property tax.
Meanwhile, Akel and Diko submitted their own proposal which stipulated a progressive, staggered IPT, exempting low-value properties from any tax, while imposing a higher rate to those of high value.
A meeting of the heads of the eight parliamentary parties was scheduled before the plenum in a bid to reach a compromise. Another bill that has to be approved in today’s last session of the House is the one concerning the hiring of 3,000 contract soldiers by the National Guard and the reduction of military service to 14 months.
On Friday there will be an extraordinary House session to condemn the 42nd anniversary of the coup against Archbishop Makarios and Turkish invasion.
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