The Council of Ministers has abolished taxation for immovable property valued up to 5 thousand euros.

Government Spokesman Christos Stylianides told reporters after the weekly Cabinet meeting chaired by President Nicos Anastasiades at the presidential retreat in the Troodos Mountains, that the decision on the immovable property amends existing legislation according to which owners of immovable property valued up to 5.000 euros had to pay a minimum of 75 euros property tax. For properties over 5.000-40.000 there will be a tax of six euros per thousand.

The Spokesman said the state expects to receive around 105-110 million euro from the new property tax.

Stylianides further said that a total of 12 thousand applications for redundancy payments were pending by the end of April. The Cabinet agreed to employ 45 unemployed degree holders to complete the examination of these applications by the end of 2013 and pay applicants their dues.

“It is the least we can do to compensate those workers who have been unemployed for a long time and have not received the money they are entitled from their Redundancy Funds,” he added.

Stylianides also said that ministers decided to promote development projects through the long-term leasing of government buildings.

He said the Cabinet would like to promote the use of unused buildings such as the Nicosia Conference Centre, the Filoxenia hotel, the site of the Hoteliers’ Institute and invite tenders for the use of old terminals at Larnaca and Paphos airports for a period of 99 years.

He further said a similar tender will open for the site of the former National Guard camp opposite the Hilton Hotel in Nicosia.

The Cabinet approved legislation for vehicle CO2 emissions and international trusts.

The vehicle CO2 emissions, he said, will streamline taxation of vehicles according to EU legislation where the only factor in calculating tax is the carbon dioxide emissions. This legislation, he added, not only helps the environment but also the car fleets.

The Cabinet also approved the establishment of a trust registry that will be monitored by the relevant authorities which will be able to access these trusts. This, Stylianides said, is an important piece of law as it will convey the message that Cyprus is a sound financial centre and will put an end to the rumours about being a centre of money laundering.

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