Filenews 8 December 2021 - by Eleftheria Paizanos
The opinion of the Legal Service has been sought by the opposition parties, which seek to abolish, with the new year, the annual fee, amounting to € 350, paid each year by registered companies. The measure was first implemented in 2012, as part of the fiscal consolidation measures, and is still in force, with the result that every year the state receives an amount of €45 million.
Yesterday, the Parliamentary Committee on Commerce discussed the law proposal of ELAM, EDEK, DIKO and Ecologists, which proposes the abolition of the company fee. A spokesman for the Legal Service said it would submit a written opinion on the matter, as already the funds to be collected have already been budgeted for 2022.
According to the drafts of the bill, the abolition of the fee is justified, as the country has for years exited the memorandum of fiscal consolidation. At the same time, they argued that the company tax is disproportionately charged to businesses, as both small and medium-sized enterprises, as well as large ones, pay the same fee. AKEL and DIPA are in favour of the law proposal and, as it seems, if it is taken to the Plenum, it is expected to be approved, as it obtains the required majority.
In January, when the bill will be discussed again, the finance ministry is expected to transfer its positions.
AKEL MP Costas Costas said they have been waiting since 2018 for the competent authorities to table a proposal to regulate the issue, indicating that his party had suggested the staggered imposition of the fee, which was not accepted.
DIKO MP Zacharias Koulias said that this is an unfair and immoral, as he called it, taxation imposed on companies, arguing that it should be immediately abolished.
EDEK MP Elias Myrianthous said that this is an unfair measure, which should be abolished and another way should be found to be able to cover the state's finances.
The Mp of Ecologists, Stavros Papadouris and the MP of DIPA Michalis Giakoumis, stressed the need to stop the imposition of the company tax.
His disagreement with the bill was expressed by DISY MP Onoufrios Koullas, who argued that the financial statements are not very different since the relevant fee was imposed, adding that it should be regulated in a way that will not affect the economy. Consumer and business associations were in favour of abolishing the levy. On behalf of POVEK, it was reported that in the midst of the pandemic it is an unbearable hike for companies. A representative of the Cyprus Bar Association said that the company fee affects competitiveness and imposes a disproportionate burden on small businesses.
