The total amount of approximately € 78 million was distributed by the 39 municipalities in the year 2018 as a state sponsorship but also as compensation for taxes that were abolished, according to the data posted a few days ago on the website of the General Accounting Office of the Republic.
Thus applying the provisions of the Law on Accounting and Financial Management, which provides for the disclosure, inter alia, of the names of natural and legal persons receiving state sponsorship based on the principles of transparency, accountability and equal treatment of citizens.
Compensation for business tax
In addition, the Ministry of Interior pays each year to the Local Authorities an amount of approximately € 20 million, of which € 17,5 million end up in the municipal coffers, for loss of revenue from the abolition of professional tax on individuals. This tax was abolished about 16 years ago.
In particular, for the year 2018, the following amounts were paid to the municipalities as a loss of income from the abolition of the professional tax on natural persons:
Famagusta District:
Municipality of Paralimni - €500.559
Municipality of Ayia Napa - € 175.924
Municipality of Deryneia - € 74.278
Municipality of Sotira - € 48.216
Municipalities of other provinces:
Municipality of Nicosia - € 4.303.530, Municipality of Limassol - € 3.541.617, Municipality of Strovolos - € 2.279.919, Municipality of Larnaca - € 1.881.825, Municipality of Paphos - € 929.893, Municipality of Aglatzia - € 502.439, Municipality of Latsia - € 447.793, Municipality of Engomi - € 403.709, Municipality of Kato Polemidion - € 361.776, Municipality of Agios Athanasios - € 285.548, Municipality of Aradippou - € 204.051, Municipality of Germasogeia - € 196.719, Municipality of Idali - € 184.104, Municipality of Lakatamia - € 182.493 D175.539 , Municipality of Mesa Geitonia - € 155.650, Municipality of Polis Chrysochous - € 130.096, Municipality of Ypsona - € 101.884, Municipality of Pegeia - € 100.030, Municipality of Geroskipou - € 93.753, Municipality of Athinainou - € 59.529, Municipality of Geriou - € 56.412, Municipality of Tseri - 52.225 , Municipality of Livadia - € 46.254, Municipality of Pano Lefkara - € 39.074 and Municipality of Dromolaxia & Meneou - € 30.147.
The amount of € 2019 million is foreseen for 94,5.
The budget of the Ministry of Interior for the year 2019 provides the amount of € 94.505.000 which is intended to cover the state sponsorship to the 39 municipalities and the 385 communities as well as other expenses as follows:
1. An amount of € 75.000 will be granted to the Union of Communities.
2. An amount of € 4.500.000 will cover the state sponsorship to the occupied municipalities / councils / communities / associations of occupied communities for their operating or other expenses and the subsidy of commemorative events of the occupied Local Authorities.
3. An amount of € 3.750.000 will cover 75% of the cost of street lighting in the communities for the year 2017.
4. An amount of € 53.605.000 will cover the state sponsorship to the 30 municipalities of the free zones which include:
* Sponsorship to the municipalities - € 51.157.520
* Loss of revenue from the abolition of cross-border (indirect municipal taxation) - € 2.187.680. Crossing fees were abolished 50 years ago. It was a form of indirect taxation imposed by the municipal authorities on products imported into their area from other areas.
* Granting conferences, meetings, events, subscriptions, etc. for local government issues by the Association of Municipalities of Cyprus for receipts - € 30.000.
* Subsidizing the operation of the Academy of Local Government of Cyprus in the amount of € 30.000 and the Energy Office of Cyprus in the amount of € 20.000.
* Sponsorship to the Union of Municipalities to cover the Secretary's salary and the operating expenses of the Central Beach Committee - € 20.000.
* Sponsorship to the Union of Municipalities for the maintenance of traffic lights throughout Cyprus - € 59.800.
* Miscellaneous - € 100.000.
5. An amount of € 19.600.000 will cover the financial assistance to the municipalities (€ 17.545.000) and the community councils (€ 2.055.000) for the loss of their income from the abolition of the imposition of professional tax on natural persons.
6. An amount of € 12.975.000 is intended to cover the state sponsorship to the community councils of the free zones as follows:
* Coverage of the cost of services provided during the year 2017 by the community council of Pyla to the Turkish Cypriot residents of the community - € 105.000. The Turkish Cypriots do not pay municipal taxes in Pyla, nor the electricity they receive from the EAC.
* Grant of the annual expenditure required for water supply purposes of the community of Alassa based on the accounts of the EAC - € 20.000.
* Granting conferences, meetings, events, etc. for local government issues by the Union of Communities against receipts - € 10.000
* Subsidy for the operation of the Academy of Local Government with the amount of € 30.000 and the Energy Office of Cyprus with the amount of € 20.000.
* Sponsorship to the Associations of Communities for clustered services and events - € 12.665.000.
* Miscellaneous - € 125.000
Source: Philenews / Michalis Chatzistylianou