AKEL’s proposal on the government VAT proposal on housing offers a way forward for young people and society

 

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

8 February 2022, AKEL C.C. Press Office, Nicosia

The proposal brought to Parliament by the government of the ruling DISY party for VAT on housing reflects the sloppiness and serving of expediencies with which the issue has been handled so far.

They have weakened the legislation, deceived the European Commission and continue to this day to put powerful economic interests above everything else. The attempt to tax young couples, who are already facing the increased cost of materials and the lack of housing policy schemes, is neither logical, nor acceptable.

AKEL’s position – which has been before Parliament since 2019 – is gaining the support of both organised associations and society in general. First, to grant the reduced rate based on the value per square metre. Second, that villas and luxury homes be exempted from the reduced rate. Third, to make eligible those who cannot currently afford to buy or build, but wish to extend an existing home. This is a logical and well-founded proposal and gives young people and society a way forward.