Filenews 28 October 2022 - by Eleftheria Paizanou
With a cap of 0.4% will be charged, retroactively, about 43,000 properties and their buyers, which were sold from February 2021 onwards. In fact, those who do not pay for it will be brought to justice.
This fee had been approved 20 months ago by the Plenary Session of the Parliament, to support the refugee population through the Equal Burden Sharing Body, but the state had not determined a mechanism or Authority that would collect it. It is worth noting that only from the sales of real estate, that took place from February 2021 until September this year, will this charge end up in the coffers of the Equal Burden Sharing Body of €15.6 million, which will be allocated to refugee support projects.
Finally, this was regulated yesterday, with government bills that were unanimously approved, which designate as the competent Authority the Tax Commissioner to collect the 0.4% fee from the sale of real estate and shares. At the same time, the Tax Commissioner will be able to take court measures and collect any amount due as a civil debt to the Republic.
Yesterday's debate in plenary was 'episodic'. An oral amendment was tabled by DIKO, which was rejected, by which the legislation would be implemented at a later date, with the aim of the Government including in the budget the €15.6 million. to be given to the Agency. DISY submitted an amendment so that the law does not have retroactive effect, i.e. not to impose the 0.4% fee on sales made from February 2021, but to apply it from now on. As DISY MPs explained, if the fee is imposed retroactively, thousands of affected people will take legal action against the state, with the risk that the courts will be overwhelmed with cases.
On the other hand, the opposition parties insisted on retroactive effect and finally the law passed provides that sales of property made in the last 20 months will be burdened by this fee. In fact, opposition MPs argued that the legislation is not unconstitutional and essentially corrects an injustice, as the Government has not taken care to collect the fee. There were also complaints that some entrepreneurs already received 0.4% from buyers, which, however, has not been given to the Government, as there was no competent Authority to collect. The retroactivity of the law was opposed by banks, land developers, as well as OEB. Sales of real estate made in the context of loan restructurings are excluded from 0.4%.
