AT 16:00 today the Finance Minister, Charilaos Stavrakis, and the Interior Minister, Neoclis Silikiotis, plan to meet to examine how state revenues may be increased by adjusting property taxes.
When the Cyprus Government announced its plans in January, the Association of Cyprus Tourist Enterprises, STEK, and the Cyprus Hotel Association, PASYXE, opposed the proposals as they would cause their industries financial problems: “this move will hit the hotel industry as hotel units will be required to pay much higher taxes; 10-15 times more than under he current system”.
Cyprus’ immovable property tax is calculated on the market value of the property as at 1st January 1980 and is paid annually the Inland Revenue Department.
According to a report in the Greek language “Politis” newspaper, the meeting will deal with the results of the survey undertaken by the Land Registry and will examine alternative scenarios on how to increase state revenues without affecting small-medium land and property owners.
UPDATE 30 MARCH 2010
According to a report in today’s Greek language newspaper “Phileleftheros”, the government is planning to tax properties based on their 2010 values.
Although this measure will increase state revenues, it will take 3-5 years to complete the revaluation. As a consequence it is highly unlikely that the changes will have any impact before 2014.