MILLIONS of euros are owed in back taxes to Peyia municipality, meaning the coffers are running dangerously low and there are now real fears for workers’ salaries.
According to local councilor Linda Leblanc around €2 million remains outstanding from more than 1,000 individuals and companies’ living and operating in the municipality.
“This is a problem we have been facing for a number of years and we are now being forced to take drastic measures,” she said.
The councilor pointed out that there are two companies in Coral Bay who between them owe €750,000, including one of the major hotels
“They owe around €300,000 in water bills,” she said, “and another hotel is in court now, how can a hotel be allowed to run up such a huge bill which has accrued over a period of time.”
Leblanc said most of those who owe money to the municipality are using the economic crisis as a reason for non payment and there are now real fears that paying municipality staff may become an issue.
Leblanc said that heavy loan repayments take priority, which means a huge chunk of money is automatically debited from the municipality bank account every month. These loans covered creating a new municipal park, implementing anti flooding measures and upgrading of the stadium.
“The loan payments take precedent so there is very little left after these have been paid. Soon we may not be able to pay municipal staff, which is why we are taking drastic measures now,” LeBlanc said.
Until now the council has been unable to reach a majority decision over what course of action should be taken, which has perpetuated the dire straights the municipality are now facing.
“We have operated a relaxed attitude to the problem and mismanagement has meant that we are now in this predicament,” she said.
She added, “There is a flaw in the system, we send out notices, and debtors just don’t pay. As a last resort we are using the courts, but this is costly and can take years.”
The councilor also said that law abiding citizens who are up to date with their taxes are outraged by the situation and are now questioning why they should pay their taxes on time.
She said, “We have now sent out final official notices and if people do not pay we will implement the law as we have been advised, and cut off water supplies, it’s our legal right.”
Notices were sent out in the last water bills and debtors have been given until the end of June to pay up or face the consequences.
“These are the third or forth notices we have sent out to people owing money, but we mean business this time,” she said.
Leblanc concluded, “Because there haven’t been any consequences for this sort of behaviour in the past, its anarchy in Peyia and also very wrong. We have to apply the law and stop the weak management.”
