The Parliamentary Finance and Budget Committee met today, Monday, February 7, 2022, and discussed the following matters:
1. a. The Value Added Tax (Amendment) Act, 2022.
(File No. 23.01.063.016-2022)
b. The Value Added Tax (Amendment) (No. 5) Law of 2019
(Proposal for a law by Mr. Stefanos Stefanou, Aristos Damianou and Andreas Kavkalias on behalf of the parliamentary group AKEL-Left-New Powers)
(No. Fak. 23.02.060.139-2019)
The committee began discussing the above bill alongside the relevant proposal for a law, which had been tabled and discussed at its previous sessions.
The purpose of the bill is to amend the basic legislation so that the reduced rate of Value Added Tax (VAT) of five per cent (5%) imposed on the delivery or construction of a house covers the first 140 square metres of the house, with a maximum area of 200 square metres, in the context of social policy, as provided for in the European Union Directive on the common system of VAT. The purpose of the proposed law is to correct distortions and weaknesses in relation to the application of the reduced VAT rate of five per cent (5%) to the supply or construction of housing.
During the discussion, the Commission was informed by representatives of the Ministry of Finance that the need to amend the legislation arose following a Letter of Formal Notice received by the Republic of Cyprus, according to which the scope of the current legislation does not meet the conditions for the exercise of social policy as set out in the Directive.
All stakeholders submitted positions and suggestions regarding the proposed regulations. Issues discussed included the transitional period, the broadening of the criteria, and the redefinition of the proposed thresholds.
The discussion on the draft laws will be continued at the next meeting of the Committee.
2. a. The Credit Facilities Purchase and Related Matters (Amendment) Act of 2021
(File No. 23.01.062.079-2021)
b. The Real Property (Possession, Registration and Valuation) (Amendment) (No. 3) Act, 2021.
(File No. 23.01.062.080-2021)
The committee continued debate on the above bills, following their adjournment from the House floor, which seek to amend:
a the Law on the Purchase of Credit Facilities and Related Matters, in order to establish a licensing and supervisory framework for credit facility management companies that enables such companies to access the banking data of the borrowers under their management, subject to the provisions of the General Data Protection Regulation, in order to assess their creditworthiness and provide them with viable restructuring solutions; and
b. the Real Property (Possession, Registration and Valuation) Law, so that the information that may be provided by the Director of the Department of Lands and Surveys to credit institutions, in accordance with applicable legislation, may henceforth be provided to a legal entity that either holds credit facilities or manages credit facilities, pursuant to the provisions of the Credit Facilities Purchase and Related Matters Law.
In the context of the discussion and on the basis of what was discussed during the previous sessions of the Committee on the same issue, a revised text of the first bill was submitted by the competent ministry in an attempt to find a consensual arrangement that satisfies all sides.
During the meeting, individual views and suggestions were expressed by stakeholders and the Committee decided to continue the discussion at its next meeting.
3. The Department of Taxation (Amendment) (No. 2) Act, 2021.
(No. Fak. 23.01.062.217-2021)
The committee continued debate with an article-by-article study of the above bill, the purpose of which is to amend the Department of Taxation Act to provide that the appointment of the Tax Assessor and Assistant Tax Assessors shall be made by the Civil Service Commission on the basis of relevant prior court decisions, and to provide for matters relating to the exercise of their powers.
During the discussion, a revised text of the bill was examined, to which amendments of a legislative-technical nature were made. The Committee decided that the discussion of this item was concluded and will take a position on it at its next meeting.
4. The Value Added Tax (Amendment) (No. 8) Act, 2021.
(File No. 23.01.062.231-2021)
The Committee continued its discussion with an article-by-article study of the above bill, the purpose of which is to suspend the imposition of additional tax and interest for certain tax periods for certain categories of businesses affected by pandemic COVID-19.
During the discussion, a revised text of the bill was considered which included extending the period of suspension as well as the imposition of the additional tax and interest for certain tax periods.
The Committee decided that the discussion of this item is concluded and will take a position on it at its next meeting.
5. The Income Tax (Amendment) (No. 10) Act, 2021.
(No. Fak. 23.01.062.221-2021)
The committee continued the debate with an article-by-article study of the above bill, the purpose of which is to extend the effective date of provisions of the basic law that provide for deductible expenses for investment in an innovative small and medium-sized enterprise until December 31, 2023, as part of the implementation of the Recovery and Resilience Plan.
In the context of its consideration of the Bill and on the basis of the discussions at the previous meeting, the Committee was informed by the relevant ministry of the possibility of extending the proposed arrangement for a further six months, until 30 June 2024. With the agreement of the relevant ministry, the Committee is awaiting the submission of a revised text of the Bill for the purposes of completing its discussion.
6. The National Betting Authority Budget Act, 2022
(Fak. No. 23.01.063.021-2022)
The Committee began debate on the above bill, the purpose of which is to authorize payment from the National Betting Authority (NBA) Fund in the amount of €19,134,136 for the fiscal year ending December 31, 2022.
During the discussion, the Committee was briefed by the President of the NAC regarding the strategic planning, objectives and individual funds included in the said budget for the year 2022.
The Committee decided to take a position on the proposed budget at its next meeting.
7. Releases of funds and exceptions to the prohibition on filling vacancies
The Committee considered a number of requests for releases of funds and exceptions to the prohibition on filling vacancies at its meeting. The releases of funds concern:
1. the State Ministry of Research, Innovation and Digital Policy,
2. the Ministry of Labour, Welfare and Social Security,
3. the Judicial Service,
4. the General Accounting Office,
5. the Legal Service of the Republic and
6. the Ministry of Health.
The exceptions to the prohibition on filling vacancies concern:
1. the House of Representatives,
2. the Ministry of the Interior,
3. The Ministry of Education, Culture, Sports and Youth,
4. the Legal Service of the Republic and
5. the University of Cyprus.
Contacts:
1. 1. Andreas Christodoulou, Speaker's Office
Editing
1. Andreas Chimonides, Director of the Communication Service
2. Sylvana Vanezou, First Lecturer. Research, Studies and Publications (seconded to the YKE)
3. Yianna Christoforou, First Stenographer of the Parliament
4. Public Secretariat. Finance and Budget Committee
Tel: 22 407464, 22 407448
Email: press.parliament1@gmail.com
Contents of this article including associated images are belongs PIO
Views & opinions expressed are those of the author and/or PIO
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