Filenews 24 October 2022 - by Eleftheria Paizanou
The government is in the process of completing the legal framework by which the super-profits of companies in the energy sector will be taxed. During the discussion of the state budget for 2023 in the Parliamentary Committee on Finance, it was said that the Ministry of Finance is in consultation with the Ministry of Energy and CERA. As the Minister of Finance, Konstantinos Petrides, said, the government's goal is to impose it immediately, however, it kept the bar low as revenues for the state will not be so high.
For his part, the Director General of the Ministry of Finance, George Pantelis, said that the government's desire is for the taxation to be imposed immediately, pointing out that the best way is being sought. As he said, a fee is being considered.
Regarding the reduced VAT that Cypriot and foreign investors benefited from when buying or building a main residence, he said that there is a process for recovering VAT. He also pointed out that the legislation created a perverse system, stressing that efforts are being made to identify those who have benefited from the 5% but rent the properties. The Superintendent of Taxation, Sotiris Markides, said that in 2-3 months there will be a result from the audits carried out by the Department, pointing out that the campaign will continue in 2023. In relation to the broader tax reform and the imposition of a green tax, the Minister of Finance reiterated that due to uncertainty and increased inflation, green taxation is transferred to the bottom.
Migrant bomb
He also pointed out that a potential bomb in the welfare state is immigration, stressing that for this reason it is included in the fiscal risks. According to the Minister, every year the Republic fights in the EU to get more funds, however, as he said what the country gets does not reflect the cost of migration to Cyprus.
It will affect the foreclosure freeze
On the freezing of foreclosures, the Minister of Finance said it would affect. Last Thursday, opposition parties tabled a bill that would extend the suspension of the foreclosure law from November 1 to the end of January 2023. The extension will be given as the foreclosure freeze approved by Parliament last July expires at the end of the month. The Minister, in response to questions, said that the suspension of foreclosures will affect, stressing that it will not serve the purpose pursued by the bill.
Budget of responsibility
As he said, the government did not take advantage of the budget for pre-election reasons, resulting in a cost and the government being attacked. He also indicated that the solution to the crisis is growth, pointing out that he cannot assess whether it will continue next year as, as he explained, it depends on the policy implemented by the next government.
