The government should defend society’s interests instead of hiding

Statement by AKEL Political Bureau member and Head of Economic Policy Charis Polycarpou

29 March 2022, AKEL C.C. Press Office, Nicosia

The government’s inability to convince the European Commission on the issue of reduced VAT for the acquisition of a home reveals its sloppiness and untrustworthiness. They have weakened the legislation, lied to the European Commission and now wonder why they cannot convince of what should have been self-evident.

Unfortunately, society and, first and foremost, the young generation will pay the heavy cost for the results of government ruling force’s actions. On top of the increased cost of materials, reduced wages, exorbitant rents and the absence of a housing policy yet another financial burden is added.

AKEL’s proposal is the only way out.  Based on the fundamental principle that the system must be simple and serve its social character, AKEL’s proposal should be simple and serve its social character providing for:

First, the reduced rate should be granted on the basis of the value of the dwelling.

Second, villas and luxury homes should be exempted from the reduced rate.

Third, those who cannot currently afford to buy or build, but wish to extend an existing home should be eligible for the reduced rate.

The government is called upon, even belatedly, to defend the interests of society and to stop hiding behind the European Commission’s stand.