THE STAND-OFF between the legislature and the executive over a proposal for the reduction of VAT on restaurant bills by certain political parties can only be described as lunacy. The two sides have been at loggerheads over the matter for several weeks, wasting valuable time on a dispute that would never have arisen, had deputies been capable of responsible behaviour.
There is no other explanation for the lunacy we have been witnessing over a triviality. DISY, DIKO and EUROKO had supported the amendment that would reduce the VAT charged by restaurants from eight to five per cent. The original bill, submitted by the government, envisaged the reduction of VAT charged for overnight stays in hotels to help hotels offer more competitive prices. Deputies decided that the VAT reduction should extend to restaurants and amended the bill accordingly.
President Christofias quite rightly sent the bill back to the House on the grounds that it was unconstitutional. There is a provision in the constitution that bars deputies from passing legislation that would increase the state’s expenditure. But deputies seem to think that the provision does not prevent them from passing legislation that would reduce the state’s revenue and are now determined to send the amended law back to the president, in order to force him to refer the matter to the Supreme Court.
Common sense suggests that deputies should not have the power to pass bills affecting government revenue or spending, because it would cause chaos with the government’s budget. Deputies, the majority of whom are irresponsible populists, would bankrupt the state if they had such a power. There is also the issue of the separation of powers which must be safeguarded.
Deputies might see sense by May 7, when the bill is expected to be approved by the House, but if they do not it would cause serious problems for the government. Christofias would have to refer it to the Supreme Court, but this would mean that there would be no reduction of VAT for hotels, until the judges reached a decision, which would take several months.
And all this, for what? So that a €50 restaurant bill would be €1.50 cheaper, assuming that the restaurant passes the reduction to the consumer. Would such a reduction have the slightest effect on the business of a restaurant? On a pitta of kebab that cost €5, the saving would be 15 euro-cents. So who would benefit from this pitifully idiotic measure proposed by the three parties? Nobody, apart from a few sad, deluded, petty-minded deputies who think that by challenging the government’s constitutional right to govern they would be earning political brownie points.
This irresponsibly meaningless grandstanding is a sad reflection of the bankruptcy of political life.
