Filenews 10 May 2025 - by Vasos Vassiliou
Municipalities are finding sticks on the issue of the increase in fees they seek to impose, since, as the chairman of the parliamentary committee on the Interior, Aristos Damianou, warned yesterday, he is not sure whether the current Parliament will approve increases of up to 35% recommended by the Ministry of Interior.
DISY MP Nikos Sykas also expressed reservations and if the positions of the two MPs echo the positions of their parties, then obviously the increases, at least on this scale, do not pass.
Of course, this theoretically suits the citizens, who will not be required to pay increased municipal fees. However, if the state increases the sponsorship to the Local Authorities (in order to cover the gaps that will be created in the Municipalities' coffers), it will increase other fees, in order to compensate for the funds it will disburse, so that the citizens will again indirectly pay the cost.
It is recalled that the Ministry of the Interior, recognizing the financial tightness of the Municipalities, and the fact that some taxes have not been increased for years, as well as the increase in the operating costs of the Municipalities (from labour to materials and services), has promoted to the Parliament an increase in fees of up to 35%.
However, the municipalities consider that the €117 million with which the government grants is too little to cover their needs. In fact, during a recent press conference of the leadership of the Municipalities, Mayors indicated that the sponsorship should exceed €160 million.
During the debate, the Chairman of the Committee, Mr. Aristos Damianou, warned: "I am not sure what the position of the parties will be on the issue of the increases requested by the Local Government (through the Ministry of Interior) for various fees. I am not sure if this Parliament will accept even the 35% that is requested to be approved. And this is despite the fact that I share their concern as to whether they will be able to meet their obligations.
Moreover, Mr. Sykas said that citizens are already burdened with several fees, so the request will be examined in this light as well.
It should be noted, however, that recently the Municipality of Nicosia imposed an increase in the property tax of up to 85% in the municipal district of Engomi, causing strong reactions from the residents. The Municipality of Nicosia relied on the increase, in the opinion of its legal adviser, while it also cited the fact that in the municipal district of Engomi the specific taxation was lower than in the other municipal districts of Nicosia.
During the discussion, the issue of the losses suffered by the Local Authorities from the fact that they will not receive the funds they previously received from the issuance of planning permits was also raised. The money from the permits (urban planning and construction) will end up with the District Local Government Organizations who will examine and issue them and to compensate for the loss. The state will pay an amount of €12 million. The remaining €9.3 million will be channelled to the communities.
As explained by the Mayor of Eastern Limassol, Mr. Kyriakos Xydias, the amount that will be collected will be differentiated depending on the permits issued. We will take the data on the licenses issued every three years so that the sponsorship is properly distributed, he said.
During the discussion, reference was also made to gaps left behind by the reform, and one of them concerns "who has the competence to handle some practical issues". Mr. Xydias said that in practice, a road can be excavated, it can be discussed who is responsible for issue A or B, the parties involved do not agree and the road remains open, with inconvenience and cost for the citizens. The issue of responsibilities must be regulated by law, said Mr. Xydias.
Another issue that was discussed concerns "who undertakes any compensation that will be decided by the Courts" for various cases, e.g. development permits handled by the Municipalities before the reform and pending lawsuits from citizens or companies, and so on. Given that the responsibility for licensing has now been taken over by the EDCs, the question has arisen as to who is responsible. On the basis of a regulation that is being promoted, the compensations will be paid by the EDAs. The president of the EDA of Famagusta, Mr. Yiannis Karousos, reacted to this specific provision, with whom the other presidents of the EDCs agree. We are willing to undertake any compensation from the day we take office, he added.
The change in the provisions of the legislation is being discussed before the parliamentary committee on the interior, with its chairman calling on the government to submit a comprehensive package of amendments, otherwise the Parliament does not intend to discuss individual changes.
