IN A MEMORANDUM President Christofias cites several reasons why the proposed changes to the law that would abolish and reduce Property Transfer Fees should be rejected, according to a report in today’s InBusinessNews.
The President said that the state could lose some €40 million in revenue if the property tax changes were implemented and that the property market would not benefit significantly from the proposals.
He also believes that the changes would put intense pressure on the Planning Authorities, Municipalities and Land Registries from the rush of those wishing to take advantage of the relaxation saying that it would be humanly impossible to process the workload created by tens of thousands of applications in six months.
The President also referred to the risk that cancellation agreements that have already been signed would benefit those who the changes are not intended to cover.
Finally, the President considered that although the law would apply for just six months, there is a risk that bogus contracts of sale could be submitted that would have the option of identifying the purchaser at some later date.
In light of President Christofias’ comments, the House of Representatives amended their proposals and these were passed by a majority vote by MPs earlier today. They will come into immediate effect on their publication in the Gazette and will remain in force for six months.
We will bring you further details once the changes have been published.