Tax Reform Discussion Concludes: AKEL and Green Party Proposals

The discussion on tax reform concluded in the Finance Committee, focusing on amendments and party proposals. Two proposals from AKEL regarding real estate taxation and corporate tax imposition, as well as a proposal from the Green Party for capital gains tax exemption for the disposal of primary residences for loans up to 2022, will be put to a vote in Monday's Plenary.

Aristos Damianou, AKEL MP, presented the proposal to impose an annual real estate tax of 1‰ for property exceeding €3 million. Naya Symeonidou from the Ministry of Finance stated that the issue requires separate study, while Giorgos Mouskidis, President of the Cyprus Landowners Association (ΚΣΙΑ), expressed objections.

Eleni Symeonidou from the Legal Service emphasized the need to explain the necessity and justification of the €3 million threshold and the tax rate. Stavros Papadouris from the Green Party proposed removing the primary residence and imposing a progressive tax.

Regarding VAT, proposals for a reduced rate on photovoltaic systems and energy upgrades of homes were discussed. Proposals were also submitted for exemption from taxation of capital gains from restructurings of non-performing loans, with Mr. Papadouris proposing to move the date to 2022.

Finally, a proposal by Alexandra Attalidou for a tax deduction for the amount of interest on a primary residence mortgage loan was discussed.