Taxes proposed to finance salary scale

Real estate and
banking sectors most affected

The joint parliamentary commissions proposed several taxes to finance the increases in the salary scale for public employees. The majority of taxes were imposed on maritime property, real estate, and the banking sector.

Taxes on violating maritime properties will have a five year retroactive effect. It will reach 2.5 percent on the value of land and 7.5 percent on buildings.

The parliamentary commissions proposed raising taxes on real estate profits from ten to 15 percent. They also proposed amending the transfer fee. Inheritors pay a one-time fee once transferring the ownership of a property. If the inherited land is sold for profit, the landlord is exempted from paying taxes. Fees will be imposed on the difference in prices between the date of transferring the property and the date of selling it, according to the new law.

The joint parliamentary commissions proposed increasing the Value Added Tax (VAT) from ten to 12 percent. The joint commissions proposed increasing the tax on interest on deposits from five to seven percent, as well as the tax on bank subscriptions to Treasury Bills (TBs). Taxes on profits of companies traded on the stock exchange, including banks, will also go up from 15 to 17 percent. The Parliament’s General Assembly will vote on the proposals.

Reforms will be part of the mandatory legal subjects for the government.

The joint commissions estimated that these proposed tax increases will yield $1.1 billion.