The Plenary Session of the Parliament unanimously passed two bills aimed at facilitating businesses and self-employed workers in the midst of the effects of the pandemic, which were submitted by the Parliamentary Finance Committee.
The amendments concern the possibility for the self-employed to pay the VAT in installments but also the extension of the payment of the extraordinary defense contribution.
The proposals were submitted jointly by the parties DISY, AKEL, DIKO, EDEK, Solidarity, Green Movement, Citizens' Cooperation and Cooperation of Democratic Forces, but also with the consent of the Ministry of Finance.
The first draft law concerns the payment of the due VAT for the tax period ending on 31.1.2021 and the tax period ending on 31.12.2020, in order to facilitate its payment in three equal installments to facilitate the debtors, who have affected by the effects of the pandemic
EDEK President Marinos Sizopoulos said that the specific proposal is moving in the right direction and could be better to help employees and businesses independently. He also said that EDEK proposed from June 2020 to June 2021 to pay only 50% of VAT and the rest to be distributed to the beneficiaries to be paid in 8 quarterly equal installments from July 2021 to June 2023. He also appealed to the Government and the Ministry of Finance to give indirect liquidity to self-employed workers and companies by suspending the payment of social security and repaying only the cost of fuel for electricity, while taxes to be paid in the two years 2021-23.
DISY MP Onoufrios Koullas stated that the consent of YPOIK was given in order to give this short-term facility to the companies so that their liquid resources are not exhausted. He also said that it is important for YPOIK to say that there is liquidity to do this, after the successful borrowing of Cyprus from the markets with virtually zero interest rate.
DIKO MP Christiana Erotokritou said that Cyprus' borrowing should be compared to what is on the market and that other European countries borrowed on five-year bonds with negative interest rates. He said it was not a huge success, and that the five-year bond yields were negative for all other European countries.
AKEL MP Stefanos focused on the fact that liquidity should be ensured as much as possible in order for companies and self-employed people to survive and that they should keep the fact that everyone cooperated in a positive way.
DISY MP Nikos Tornaritis described DIKO's stance on the loan as micro-psyche and said that if the state budget was voted against, “with our gins we would throw the Republic of Cyprus on the rocks”.
Regarding the draft law on extraordinary contribution for defense, with this obligation to pay the extraordinary defense contribution, for the payment of a dividend for 2018, is extended by three months until April 30, 2021 without payment of fines or interest.
