Parliament blocks retroactive write-off of undeclared work fines

The Cypriot House Labour Committee has moved to block a government proposal that would have retroactively written off 64.3 million euros in surcharges related to undeclared work. Under current legislation, employers and self-employed individuals face a 50-euro daily penalty for late payment of fines with no upper limit. This has led to a total accumulated debt of 73.018.900 euros owed by 706 debtors since late 2017. The government bill aimed to cap these penalties at twice the original fine and apply this limit retroactively to June 2017.

However, following a proposal by AKEL, the committee unanimously voted to remove the retroactive clause, deciding that the new cap will only apply to future fines. This decision prevents the loss of 64.3 million euros in state revenue, ensuring that no debts are written off for past violations. The government maintains that the current system is overly punitive and has expressed dissatisfaction with the committee’s decision. Labour Minister Marinos Moushouttas is expected to attend the next session of the committee to defend the original bill and persuade lawmakers of the need for the relief measure as initially proposed.