Tax Reform: AKEL and Ecologists' Proposals to the Plenary

The discussion in the Finance Committee on the tax reform has been completed, with Members of Parliament discussing amendments and law proposals.

Two law proposals from AKEL regarding the taxation of immovable property and the imposition of a corporate tax, as well as a proposal from the Ecologists Movement for the exemption of capital gains tax for the disposal of a primary residence for loans up to 2022, will be submitted for voting in Monday's Plenary.

Aristos Damianou presented AKEL's proposals. The first concerns the imposition of an annual property tax of one per mille for property over €3 million. Naya Symeonidou, on behalf of the Ministry of Finance, stated that the issue requires a separate study.

Giorgos Mouskidis, President of KSIA, reacted to the proposal. Eleni Symeonidou from the Legal Service, requested clarifications regarding the necessity and method of imposing the tax.

AKEL's second proposal concerns a graduated tax on registered companies with specific assets. The representative of the Ministry of Finance stated that the proposal was not adopted because no other country imposes a tax that is not reciprocal.

Proposals for reduced VAT were withdrawn and will be resubmitted in January. Stavros Papadouris proposed a reduction in VAT to 5% for photovoltaic systems. Proposals for capital gains from restructurings were submitted by Mr. Papadouris and Sotiris Ioannou.

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