Новости

8 Jul 2010

Cyprus property tax increase heading for the bin

 The Cyprus government’s plans to raise an additional 80 to 100 million Euros in taxes from property owners in efforts to combat the recession may be rejected along with a proposed bill that would increase corporate tax by 1 percent.

By: Jacqueline Agathocleous
Published: July 6th, 2010  

GOVERNMENT bills to increase corporate and Immovable Property Tax seem to be veering towards rejection, with most parties expressing their opposition.

The two bills will be submitted to this week’s plenary session for approval, with DIKO and EDEK firmly against, AKEL in favour, and DISY and the Green Party saying they will offer their final stance on Thursday. But the two latter have expressed their doubts and said they are most likely going to reject them.

The two bills were drawn up as part of the government’s efforts to improve public finances and reduce the state deficit. The government proposes a one per cent increase in corporate tax – taking it from 10 per cent to 11 per cent – and a fractional increase in Immovable Property Tax.

Those objecting claim an increase in corporate tax would hit the small businesses and deter foreign investors, while an increase in Immovable Property Tax would have more dire effects on law-abiding land owners than the wealthy.

But the government – and ruling AKEL – maintain that increasing corporate tax would increase state revenue significantly, by taking from the big business moguls and ensuring they too are contributing their fair share to helping the country emerge from the crisis.

“We feel big and provocative wealth should take on its own share for the state to emerge from the crisis and we are truly saddened to see political parties identifying with the big wealth instead of making sure that everyone takes on their responsibility for the financial crisis,” said AKEL’s Stavros Evagorou yesterday