The Ministry Submitted a specific Proposal to the Parliament, which also had the consent of the European Commission
The issue of imposing a reduced VAT rate of 5% on the acquisition of a first home in the context of social policy has been preoccupying the Government, the House of Representatives and society for almost two years.< /p>
Weighing the risks from the fact that from July 2021 Cyprus received a letter of violation, our Government from the first days put the matter among its priorities.
With the initiatives of the Ministry of Finance, intensive contacts and consultations began, both with the competent European Commission and with the Parliament, so that there would be a conclusion for the benefit of society and the economy, but always within the context of the specific provisions of the Community Directive.
The Ministry of Finance submitted a specific Proposal to the Parliament, which also had the consent of the European Commission. Throughout the debate in Parliament, the Government has been in constant communication with the European Commission, and the Ministry of Finance has developed a constructive mediating role to bring about a conclusion.
We welcome the fact that even with the manipulations of the Parliamentary Finance Committee there was an almost unanimous vote of the bill.
On the basis of these data, the Government will support the final decision of the Parliament before the European Commission, aiming at its acceptance, but also at the restoration of a chronic distortion, in the sensitive social issue of acquiring a residence.