A bill to increase betting tax from 3% to 4.5% to help football clubs pay off their tax debts is expected to pass in parliament on Thursday with support from DISY, DIKO and ELAM parties.
DIKO plans to propose an amendment raising the tax to 5%, with the additional 0.5% going to sports federations other than the Cyprus Football Association (CFA). Currently, these federations receive 0.5% from betting revenue.
During today’s Finance Committee meeting, MPs from AKEL, DEPA and the Green Party strongly opposed the formula for settling clubs’ debts, particularly regarding teams not complying with existing debt repayment schemes.
AKEL MP Aristos Damianou argued that when agreements are made, commitments must be kept, noting that tax debts should be collectable – which he said is not the case for football clubs.
His colleague Andreas Kafkalias questioned the legality of the scheme and whether the state could legitimately grant funding to clubs with outstanding debts.
A Law Office representative assured the committee that debt offsetting is legal under current laws. However, DEPA MP Alekos Tryfonides called for clarification from the Finance Ministry about potential new debt repayment plans.
When ministry representatives could not provide answers, he requested direct communication from the President and Finance Minister.
The State Aid Commissioner Stella Michaelidou faced criticism from AKEL MP Christos Christofides over her position on whether the bill constitutes state aid.
She maintained that her office had consistently raised concerns about state aid elements in the legislation since December.
The parliament is scheduled to vote on the bill on Thursday.
