Cyprus Budget Pitched For EU Harmonisation

by Lorys Charalambous, Tax-News.com, Cyprus

01 February 2002

Nicos Anastassiades, Chairman of the ruling DISY Party in Cyprus, has revealed that the 2002 budget is intended to provide 'intensive preparation' for the country's EU entry, which is thought to be imminent.

'This is essentially a harmonisation budget, because 2002 is anticipated to be the year when Cyprus will successfully complete accession negotiations with the EU - a supreme and historic achievement,' he explained.

Mr Anastassiades pointed out that while growth in the EU slumped to 1.6% following the September 11th terrorist attacks, GDP growth was estimated at 3.8% in Cyprus for the same period. This, when taken in connection with the fact that Cyprus is enjoying full employment, low inflation, and a low fiscal deficit, demonstrates the 'robustness' of the economy, according to the DISY leader.

Although Mr Antassiades announced recently that he welcomed the government's bold tax reform package, the proposals have come under criticism from other quarters.

Parliamentary Spokesman for AKEL, Andreas Christou, criticised the Cypriot government for its 'lack of vision', and accused it of having delayed submitting tax proposals, and of having placed the majority of the tax burden on lower income groups.

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