Cyprus Mail www.cyprus-mail.com
Thursday, January 17, 2013
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New property tax rates fixed State says 76.9pct of homeowners will not be affected by €120m tax grab
Two die as diverted helicopter crashes in London
By George Psyllides
By Michael Holden and Brenda Goh
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HE CABINET yesterday approved new immovable property tax (IPT), which exempts property of up to €40,000 at 1980s values, but also scrapped the taxfree threshold. This means that if a property was worth €50,000 at 1980 levels, the tax will be charged on the full €50,000 and not just the €10,000 difference. The bill, which will be submitted to parliament today, is in line with a preliminary bailout agreement and could fetch the government some €120 million in 2013. The government expects to collect at least €90 million, meeting its obligation to international lenders, it said. Speaking after the cabinet meeting, government spokesman Stefanos Stefanou said this was essentially a transitional tax since the state must update values in 2014 to be in line with current market prices. According to the bill, properties worth up to €40,000 in 1980s values would not be taxed. Stefanou said around 262,000 people and some 8,500 companies would not have to pay. “This means that 76.9 per cent of property owners will not pay property tax,” said Stefanou. “The price of real estate throughout Cyprus has mushroomed since 1980, For statistical purposes, on average, real estate
values have increased seven or eight times over. So when we talk about a house worth €40,000 in 1980, its current value will be around €300,000, maybe more depending on the exact location. But the government’s effort was to ensure that the largest percentage of average homeowners would be taxexempt,” he added. According to the new rules, properties worth more than €40,000 and up to €120,000 will be taxed at a rate of 4.0 per thousand on the full amount, without subtracting the taxfree €40,000. This means that around 61,800 owners, 18.45 per cent of people will pay between €257 and €480 per year, Stefanou said. From then on: between €120,001 up to € 170,000, the tax rate will be 8.0 per thousand, an average of €1,127 and a maximum of €1,360 per year. Stefanou said this would affect 1.6 per cent of property owners. At the next stage – properties worth between €170,001 and €300,000, the tax rate will be 12 per thousand, which will affect around 3.657 owners who will have to stump up on average €2,592 to a maximum of €3,600 per year. For properties worth between €300,001 and €500,000, the tax rate will be 15 per thousand, affecting 998 owners who will pay on average €5,580 with a maximum set at €7.500 a year. Some 315 owners whose
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Debris is pictured in front of a fire engine at the scene of a helicopter crash in central London yesterday (AFP)
A HELICOPTER crashed into a crane on top of one of Europe’s tallest residential blocks yesterday, killing two people as it burst into flames and spiralled down into rush-hour traffic close to the Houses of Parliament in central London. Police said there was nothing to suggest a terrorism link to the crash on a foggy morning on the south bank of the River Thames, less than a mile from Britain’s parliament, its secret services headquarters and the site of a new US embassy. In parliament, later in the day, Prime Minister David Cameron said helicopter flights over a city with an increasing number of huge skyscrapers needed to be carefully examined. “There was a big bang and bits started showering down, then there was an explosion down the road,” said truck driver Ray Watts whose vehicle was hit by falling debris. “We saw the fireball down there and the smoke. We didn’t know what way to run because there were bits coming down everywhere.” Witnesses said the helicopter hit a crane on top of the as-yet unoccupied 185-metre (200-yard) high cylindrical block - The Tower, One St George Wharf - spun out of control, fell to the ground and burst into flames, setting nearby buildings alight. Wreckage was strewn across roads close to Vauxhall train station, a major transport
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