Filenews 6 March 2025
An increase of up to 34% in the collection of garbage can be imposed by the new Municipalities for harmonization purposes within the same Municipality. In other words, if a Municipality was created by merging five Municipalities (with different garbage fees in each Municipality) on the basis of a bill submitted by the government, in order for uniform fees to prevail, an increase of more than 14% and less than 35% may be imposed. There is no reason to reduce the fee.
In the relevant bill, which is currently being discussed before the parliamentary Committee on Internal Affairs, the following are recorded:
«… With the beginning of the first period of imposition of garbage collection fees, based on the provisions of paragraph (c) of this article by the new municipalities, starting from 1 July 2024 onwards, the increase imposed on garbage fees may be more than 14% and in any case less than 35% of the fees of the previous year, only where this is necessary for the purposes of harmonising charges within the same municipality'.
In addition, with regard to taxation levied by municipalities, also for harmonisation purposes, an increase of between 10% and 35% may be imposed. Specifically, the bill states: "... At the beginning of the first tax assessment period under the provisions of this Article by the new municipalities, starting from 1 July 2024 onwards, the Council may fix the rate of tax so that the total increase may exceed 10% and in any event not exceed 35%, of the total amount of tax levied in the immediately preceding year, only where necessary for the purposes of tax harmonisation within the same municipality'.
Moreover, according to a bill regulating the operation of District Self-Government Organizations (EDAs) and in particular their financial independence, EDAs will not refund to Municipalities 60% of the fees from development permits (town planning and building permits), as foreseen. This arrangement is promoted because the EDAs also took over the salaries of municipal employees seconded to the EDAs.
The hole created in municipalities by permit fees will be filled in other ways.
The bill states that the purpose of the promoted regulations is "to further improve the legislative framework governing the operation and financial independence and robustness of the newly established District Self-Government Organizations, through the regulation of financial and technical issues as well as the deletion of the refund of 60% of licensing fees to the relevant local authorities".
Furthermore, the Councils of District Self-Government Organizations are given the possibility of delegation of powers, issues related to pending court proceedings are regulated, fees are provided in order to create a functional capacity to undertake the management of green points until the publication of relevant Regulations, as well as clarification of points of the transitional provisions.
