Parliament rejects house tax compromise

 

PARLIAMENT rejected the Government’s counter-offer on tax rates for first-time home buyers on Wednesday, opting instead for greater tax relaxation to boost the housing market and benefit buyers. 

The President of the Republic had refused to sign the previous proposal into law and had sent it back to Parliament. 

 Legislators voted for a five-per cent tax rate for up to 200 square metres instead of the 150 square metres proposed by the Finance Minister as a compromise.

This applies to homes of up to 363 square metres, including all building additions (275 square metres without them). 

Home buyers previously paid a 15-per cent tax rate and later received a rebate from the government for the first 130 square metres, ultimately paying 10 per cent for them. 

This applied to homes of up to a total of 250 square metres (plus 88 square metres for covered spaces).

The House, with the exception of ruling party AKEL, voted for a direct five-per cent rate. If the Government accepts the House’s legislative proposal, the law will be applicable from October 1.

 

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