THE Cyprus government is to scrap the previous administration’s bill on Immovable Property Tax (IPT) and will prepare a new one, Interior Minister Socrates Hasikos said yesterday.
“The legislation is being shaped in collaboration with the Finance Ministry. It will definitely not be the previous bill,” Hasikos said.
Asked whether this meant the bill drafted by the Christofias administration was being withdrawn, the minister said: “Yes, for now.”
He did not indicate any timetable.
The previous government had intended to pass its bill through parliament before the recess for the presidential elections but the majority of MPs voted to postpone discussion on the grounds that more time was needed to study the provisions in depth.
That bill exempted property of up to €40,000 at 1980 values from paying the tax, but also abolished a tax-free threshold, meaning assets above that amount would be taxed on their full value.
It provided that properties worth more than €40,000 and up to €120,000 would be taxed at a rate of €4.00/thousand on the full amount, without subtracting the tax-free €40,000.
From then on: between €120,001 and € 170,000, the tax rate would be €8.00/thousand; for properties worth between €170,001 and €300,000, the tax rate would be €12.00/thousand.
For properties worth between €300,001 and €500,000, the tax rate would be €15.00/thousand.
Owners whose properties are valued between €500,001 and €1.0 million would pay €18.00/thousand and those who have properties worth more than €1.0 million would be taxed at the rate of €20.00/thousand.
The tax was to be applied on the total value of the property in someone’s name.