28/06/2010 13:16
Finance Minister, Charilaos Stavrakis had to face a number of reactions at the House of Representatives today during the discussion of the bills on the introduction of income criteria in the children and dtudents’ benefit. The organizations of the families with many children and the students reacted strongly to the measures, while DIKO might even vote against them. DISY insists on the introduction of asset – instead of income – criteria.
Defending the government’s intention for the targeting of the measures, the Minister said that only 8% of the population will be affected by the income criteria.
“Besides, the improvement of the public finances is a one-way street and a necessary requirement to achieve an economic growth and to secure the Cypriot citizens’ welfare”, he said.
Mr. Stavrakis supported that the targeting of the social benefits was sought by all political parties and most organizations, while “our target is to prevent the millionaires, their children or their wives from enjoying social benefits that – at the end of the day – are paid by the Cypriot citizens-tax payers”.
“The targeted benefits will be effective from 2011 and only 8% will be affected. The vast majority, 92% of the population, will continue to enjoy the same benefits”, he said.
“Also, it is not right the income criteria to burden the employees against all those who evade taxes”, he noted and appealed to the Parliament to approve the bills for the consolidation of the public finances.
Responding to the question of DISY Vice President, Averof Neophytou, he said that when someone in Cyprus has revenues from dividends or interests it is difficult for the income tax to know. “However, this does not change the fact that the annual income must be declared. This is why there is a penalty of €40 thousand and the fine is imposed considering someone’s effort to steal the state and the government”, he stressed.
The Minister also clarified that a failure to declare the revenues is a penal offence.
The Minister’s commitments and views did not convince the social partners, the organizations for the families with many children, the students and the political parties (excluding AKEL and PEO).
They support that the targeted measures will affect much more citizens, while it is unfair for those who work for years and their revenues reach €70 thousand.
Chairman of the Pancyprian Association of Five-Member Families, Efthimios Strouthos said that the government must not ‘touch’ the benefits which are actually an award for the families that have many children.
Similarly, Chairman of the Pancyprian Association of Families with Many Children, Paraskevas Samaras, expressed his disagreement and wondered why this targeting is not temporary. He also talked about racism to the families with many children, stressing that the government will not be saved with the €3 million of the families, but with the elimination of tax evasion.
The students reacted too. POFEN General Secretary, Chrysostomos Pasiardis said that the students do not agree with the government’s intentions and they did not exclude the possibility of asking for offsetting measures.
On behalf of SEK, Deputy General Secretary, Petros Theophanous said that the bills take into account the salary of the previous year and insisted that benefits are lost for families with revenues lower than €70 thousand.
DEOK, via its Deputy General Secretary, Iosif Anastasiou, asked by the government to take offsetting measures. At the same time, he said that those issues have been dealt with superficiality.
PASYDY disagreed with the government too. The General Secretary of the organization, Glafkos Hadjipetrou said that a couple of public employees of an A7 scale will be excluded from the benefits.
On the other hand, PEO Deputy General Secretary, Sotiris Fellas said that in a period of economic crisis, targeting is a challenge and urged the Parliament to back the bills.
Some parties supported that the administrative cost from the examination of the applications will be much more than those that flowed to the state coffers. This was rejected by the Minister, who stressed that the administrative cost is zero. However, he did not exclude the possibility that the Finance Ministry asks for the declaration of the assets too.
Mr. Stavrakis reiterated that the targeting will save €24.8 million and in case of false declarations, the fine might reach €40 thousand.
AKEL MP, Stavros Evagorou emphasized that the bills will establish social justice.
DISY Voce President, Averof Neophytou said that the bill will affect citizens receiving €50 thousand too and stressed that in order a measure to be socially fair it must give more to those who really need it.
“Instead of meeting the CB Governor for the package of measures, the government met the General Secretaries of PEO and SEK”, he said.
DIKO MP and Chairman of House Finance Committee, Nicholas Papadopoulos wondered how only 8% of the population is affected.
“The government’s ‘mathematics’ are erroneous. DIKO still doesn’t know whether it will vote for the bill. The final decision will be taken tomorrow”, he noted.
EDEK MP, Marinos Sizopoulos recommended that the applicants submit a report with their total income together with the application for the benefit, as well as their assets and loans.
On behalf of the Ecologists, MP Giorgos Perdikis wondered whether the cutback of the benefits to the families with many children will contribute to the lower birthrate.
Defending the government’s intention for the targeting of the measures, the Minister said that only 8% of the population will be affected by the income criteria.
“Besides, the improvement of the public finances is a one-way street and a necessary requirement to achieve an economic growth and to secure the Cypriot citizens’ welfare”, he said.
Mr. Stavrakis supported that the targeting of the social benefits was sought by all political parties and most organizations, while “our target is to prevent the millionaires, their children or their wives from enjoying social benefits that – at the end of the day – are paid by the Cypriot citizens-tax payers”.
“The targeted benefits will be effective from 2011 and only 8% will be affected. The vast majority, 92% of the population, will continue to enjoy the same benefits”, he said.
“Also, it is not right the income criteria to burden the employees against all those who evade taxes”, he noted and appealed to the Parliament to approve the bills for the consolidation of the public finances.
Responding to the question of DISY Vice President, Averof Neophytou, he said that when someone in Cyprus has revenues from dividends or interests it is difficult for the income tax to know. “However, this does not change the fact that the annual income must be declared. This is why there is a penalty of €40 thousand and the fine is imposed considering someone’s effort to steal the state and the government”, he stressed.
The Minister also clarified that a failure to declare the revenues is a penal offence.
The Minister’s commitments and views did not convince the social partners, the organizations for the families with many children, the students and the political parties (excluding AKEL and PEO).
They support that the targeted measures will affect much more citizens, while it is unfair for those who work for years and their revenues reach €70 thousand.
Chairman of the Pancyprian Association of Five-Member Families, Efthimios Strouthos said that the government must not ‘touch’ the benefits which are actually an award for the families that have many children.
Similarly, Chairman of the Pancyprian Association of Families with Many Children, Paraskevas Samaras, expressed his disagreement and wondered why this targeting is not temporary. He also talked about racism to the families with many children, stressing that the government will not be saved with the €3 million of the families, but with the elimination of tax evasion.
The students reacted too. POFEN General Secretary, Chrysostomos Pasiardis said that the students do not agree with the government’s intentions and they did not exclude the possibility of asking for offsetting measures.
On behalf of SEK, Deputy General Secretary, Petros Theophanous said that the bills take into account the salary of the previous year and insisted that benefits are lost for families with revenues lower than €70 thousand.
DEOK, via its Deputy General Secretary, Iosif Anastasiou, asked by the government to take offsetting measures. At the same time, he said that those issues have been dealt with superficiality.
PASYDY disagreed with the government too. The General Secretary of the organization, Glafkos Hadjipetrou said that a couple of public employees of an A7 scale will be excluded from the benefits.
On the other hand, PEO Deputy General Secretary, Sotiris Fellas said that in a period of economic crisis, targeting is a challenge and urged the Parliament to back the bills.
Some parties supported that the administrative cost from the examination of the applications will be much more than those that flowed to the state coffers. This was rejected by the Minister, who stressed that the administrative cost is zero. However, he did not exclude the possibility that the Finance Ministry asks for the declaration of the assets too.
Mr. Stavrakis reiterated that the targeting will save €24.8 million and in case of false declarations, the fine might reach €40 thousand.
AKEL MP, Stavros Evagorou emphasized that the bills will establish social justice.
DISY Voce President, Averof Neophytou said that the bill will affect citizens receiving €50 thousand too and stressed that in order a measure to be socially fair it must give more to those who really need it.
“Instead of meeting the CB Governor for the package of measures, the government met the General Secretaries of PEO and SEK”, he said.
DIKO MP and Chairman of House Finance Committee, Nicholas Papadopoulos wondered how only 8% of the population is affected.
“The government’s ‘mathematics’ are erroneous. DIKO still doesn’t know whether it will vote for the bill. The final decision will be taken tomorrow”, he noted.
EDEK MP, Marinos Sizopoulos recommended that the applicants submit a report with their total income together with the application for the benefit, as well as their assets and loans.
On behalf of the Ecologists, MP Giorgos Perdikis wondered whether the cutback of the benefits to the families with many children will contribute to the lower birthrate.
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