The International Monetary Fund (IMF) has called on Cyprus to consider reinstating the Immovable Property Tax, which was withdrawn this year, and raising transfer duty to increase revenues.
Twenty five owners of properties valued in excess of €3 million at 1980 prices failed to pay their Immovable Property Tax by 27th December according to information from the Tax Department.
Approximately half of all property owners whose properties are valued in excess of half a million Euros at 1980 prices have not paid their property tax analysis of the Tax Department data shows.
The Tax Department will start sending Immovable Property Tax demands today that will include significant discounts agreed by parliament earlier this year of 75 per cent if they settle their account by 31 October.
In September the Tax Department will start sending Immovable Property Tax notices to some 237 thousand taxpayers who will find their tax bills reduced to 25 per cent of the amount demanded last year.
The Cyprus parliament has agreed that Immovable Property Tax for 2016 will be based on 1980 values but reduced by 75 per cent on the amount paid last year; IPT will be abolished in 2017.
The Cyprus government has changed its proposal regarding Immovable Property Tax because, according to media reports, municipalities have already started to send out property tax notices.
If the Cyprus parliament passes the proposed changes to Immovable Property Tax the government expects to collect €44.4 million from more than 306,000 taxpayers, while some 65,000 taxpayers will be exempt.
Discussions on major reforms of the Cyprus property tax system continued today with Finance Minister Harris Georgiades urging MPs to pass legislation before parliament's summer recess.
Discussions on major reforms of the Cyprus property tax system designed to improve the fairness of the tax burden and to increase the efficiency of tax administration have started in Parliament.
Yesterday the Council of Ministers approved a 50 per cent reduction in the Immovable Property Tax rate and put an end to the property tax collected by municipalities and communities.
It appears that more than 33,000 large landowners who own property valued in excess of half a million Euro at 1980 prices have not paid their Immovable Property Tax according to the daily Phileleftheros.
Approximately 262,300 individuals have managed to avoid paying Immovable Property Tax after reportedly submitting false identification documents at Land Registry Department offices according to reports.
The Cyprus News Agency reports that the government had collected almost €85 million in Immovable Property Tax by 3rd December, which accounts for approximately 82.25 per cent of the total.
Immovable Property Tax (IPT) amounting to €55.5 million had been paid by 193,833 taxpayers (72 per cent of the total number) by mid-November, according to senior tax officer Klelia Papadopoulou.
Earlier today Cyprus MPs voted to extend the Immovable Property Tax (IPT) payment deadline until the end of December; discounts offered for payments made by end November.
Opposition political parties DIKO and DISY called for a bigger discount on Immovable Property Tax (IPT) on Monday arguing that the state stands to collect more revenue than required.
The Cyprus cabinet has approved a bill to provide a discount on Immovable Property Tax for early-bird payers and extend the deadline for paying the property tax by two months until 30 November.
