Municipal tax increases on hold

The leak of information that the Article 152 Committee, which reviewed the appeals regarding municipal taxes, ruled against the municipal decision has cast a shadow over the Central Corfu Municipality. The case involves three distinct appeals: two filed by Giorgos Karydis and ten representatives of Local Councils against the decision to adjust municipal taxes, and a third by hotels seeking to exempt tourist beds from being classified as a separate category. According to unofficial reports, in all cases, the decision was made by a two-to-one vote against the municipal ruling. This means that the central Municipality is required to suspend the implementation of the measure until the anticipated new appeal is heard by the Council of State and the previous fee structure is reinstated.

The official written decision of the Committee is eagerly awaited, as it will outline the reasoning behind the ruling, which the central Municipality will use to draft a new appeal in the administrative courts. According to the same leaked information about the Committee’s decisions, on Tuesday, it accepted Karydis’ appeal both procedurally—regarding the obligation to discuss the matter at the Local Council level—and substantively, ruling that there was no increase in compensatory services to justify a tax increase. This unofficially sparked a strong reaction from the municipal administration, which argues that tax rationalisation is essential to generating revenue for fulfilling obligations related to waste management, including its transportation.

These developments put the municipal administration in a difficult position, as it plans to introduce the budget for discussion and decision at the upcoming central municipal council meeting. The situation now changes dramatically in terms of financial planning.

Well-informed sources indicate that the Poulimenos municipal administration is inclined to bring the matter back to the Municipal Committee as soon as possible and then to the municipal council for a new decision on the readjustment of municipal taxes. The argument is that a prolonged suspension of necessary revenue could destabilise waste management, especially in the middle of the tourist season.

The decision of the Article 152 Committee on similar appeals against the decisions of the other two municipalities of Corfu is also highly anticipated. It is widely expected that the ruling will be similar to that made against the central Municipality.

GIORGOS KATSAITIS