Cypriot Finance Minister Discusses 2003 Budget

by Lorys Charalambous, Tax-News.com, Cyprus

15 October 2002

Speaking before Parliament late last week with regard to the 2003 budget, Cypriot Finance Minister, Takis Klerides stressed that the prevailing international economic climate is still uncertain, but pointed to the government's achievement of its strategic goals this year as a reason for optimism in the future.

The Finance Minister outlined the Cypriot authorities' economic success stories, which include continued macroeconomic stability, low inflation rates, and the containment of the fiscal deficit at below 3%. However, he added that:

'The epitome of the achievement of the ambitious goals set by the government is the fact that Cyprus today is internationally acknowledged as a respectable economy, characterized by high credibility and the high standard of services it provides.'

Mr Klerides also referred in his speech to the anticipated beneficial effects of the recent corporate and individual tax reforms, and predicted that the reduction of the corporate tax rate to 10% for both local and international businesses will likely boost the economy and enhance the jurisdiction's attractiveness as a local for overseas businesses.

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