Cypriot Government Accused Of Preparing Imminent Tax Hikes

by Lorys Charalambous, Tax-News.com, Cyprus

26 May 2004

Politicians from the Opposition DISY party have accused the Cypriot government of planning a “storm of tax measures” and cuts in social provisions immediately following next month's elections to the European Parliament.

“While planning these unbearable and anti-popular measures, which would literally bring Cypriot citizens to their knees, they are being concealed by the government, which aims in imposing them immediately after June 13,” deputy Maria Kyriacou and Euro election candidate Manthos Mavromatis asserted at a recent news conference.

President Tassos Papadopoulos meanwhile has reacted angrily to reports suggesting that the government is considering a 3% increase in the rate of Value Added Tax.

“I am very annoyed at reports of new taxes... this is not even on our agenda today,” he told reporters following a Cabinet meeting last week.

Speculation on tax rises has mounted as the government attempts to tackle a fiscal deficit set to hit 4.2% this year, significantly above the 3% ceiling permitted by the European Union.

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