Cyprus Mail 4 January 2022 - by George Psyllides
Parliament on Tuesday rejected a presidential veto of a bill passed by opposition parties to cut VAT on electricity bills from 19 per cent to 9 per cent across the board for an indefinite period.
The rejection was unanimous as even ruling Disy voted in favour but for different reasons.
MP Harris Georgiades said the party did not change its position on the essence of the issue, but it rejected the veto for constitutional reasons relating to the right of the legislature to draft the state’s tax policy.
The president’s veto had been expected after the government warned it would have a huge impact on state finances. The government stood to lose some €75m.
The matter will most likely be referred to the Supreme Court, which has the final say on constitutional matters.
In the meantime, the government has approved a decree reducing VAT on household bills to 5 per cent for vulnerable groups and 9 per cent for the rest, for six and three months respectively, starting November 1.
