DEPUTIES yesterday rejected the cabinet?s new immovable property tax (IPT) rates, opting instead to postpone discussions on the grounds that more time was needed to study the provisions in depth.
The government wanted the bill approved before Monday, when eurozone finance ministers are scheduled to discuss the island?s bailout bid.
The bill, approved by the cabinet on Wednesday and submitted to parliament earlier yesterday, is in line with a preliminary bailout agreement and in theory it could fetch the government some ?120 million in 2013.
The government requested the bill to be classified as urgent, meaning parliament would have to discuss and vote on it immediately.
However, the government?s request was rejected by majority vote ? 31 to 17 with only ruling AKEL voting in favour. There were no abstentions.?
Main opposition DISY deputy chairman Averof Neophytou stressed that despite the postponement, a clear message must be sent to international lenders that parliament remained committed to approve additional property tax after the necessary time was given to lawmakers to study the bill.
?We do not have all the information before us,? Neophytou said during the lunchtime session.
DIKO?s Nicolas Papadopoulos echoed Neophytou in that parliament remained committed to passing a tax bill, adding too that more time was needed to ?examine the bill in depth.?
?EDEK MP Giorgos Varnava felt the need to stress that this should not be interpreted as an attempt to protect privileged groups.
AKEL however, accused the opposition of trying to postpone discussion until after the presidential elections mid February, although House President Yiannakis Omirou said efforts would be made to put the issue back on the agenda and call another session before the elections once some discussion had taken place at committee level.?
Nicos Katsourides, the party?s parliamentary representative accused his colleagues of hypocrisy. ?In all the years I have been an MP, whenever an IPT bill came to parliament it ended up being shredded to pieces,? he said, adding that under the provisions it was clear that 78 per cent of all property owners would not be affected by the new tax. Wealthy property owners on the other hand, would be.?
Addressing his opposition colleagues, Katsourides pointed out that no one had expressed any concerns when parliament hastily passed a batch of austerity measures in December that involved tax and other hikes affecting the man in the street.?
Katsourides said the opposition?s intention was clear: ?to not discuss the bill before the presidential elections. ?If your intentions are honest then come back in one week,? he added.
The bill exempts property of up to ?40,000 at 1980s values, but also abolishes a tax-free threshold, which means assets above that amount would be taxed on their full value.
It provides that properties worth more than ?40,000 and up to ?120,000 will be taxed at a rate of 4.0 per thousand on the full amount, without subtracting the tax-free ?40,000.
From then on: between ?120,001 up to ? 170,000, the tax rate will be 8.0 per thousand; for properties worth between ?170,001 and ?300,000, the tax rate will be 12 per thousand.
For properties worth between ?300,001 and ?500,000, the tax rate will be 15 per thousand.
Owners whose properties are valued between ?500,001 and ? 1.0 million will pay 18 per thousand and those who have properties worth more than ?1.0 million will be taxed at the rate of 20 per thousand. ?
The tax will be applied on the total value of the property in someone?s name.
Earlier in the day the bill was discussed at the House Finance Committee.?
Inland revenue boss Giorgos Poufos and permanent secretary of the interior ministry Andreas Assiotis made it clear to deputies that even a small change would throw off the state?s calculation designed to bring in ?120 million.
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Source: http://www.cyprus-mail.com/cyprus/deputies-reject-property-tax-bill/20130118
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