Parliament: Unanimously rejected the referral of a law on VAT on electricity

The Plenary Session of the Parliament unanimously rejected the referral of the law for a reduced VAT rate on electricity.

The returned law was passed by the Plenary Session of the Parliament on December 3 and was returned to the Parliament by the President of the Republic on December 22.

In the reasons for the referral, the President states that the law he referred to violates EU law and at the same time the Principle of Discrimination of Powers.

Additional reasons for the reversal are economic and financial, as it is considered that the passage of the law will have a major impact on public finances and will derail the fiscal commitments and targets of the state as it is a measure with horizontal implementation for which no timeframe has been set. As mentioned, the loss is expected to amount to approximately 75 million euros for a period of one year based on the EAC receipts for VAT.

It also states that, in essence, the referred Law intervenes and amends the fiscal policy, which is subject to the obligations of EU law and is contrary to the relevant provisions of the Constitution, namely Article 167.

Expresses the position that the House of Representatives, through the enactment of laws that substantially influence fiscal policy-making, intervenes in the executive branch's effort to fulfill its budgetary obligations, in accordance with EU law, and recommends that Parliament not adhere to the decision. of, accepting the Referral.

kathimerini.com.cy