Government Survey Reveals Many Cypriots Unaware Of Tax Reform Plans

by Lorys Charalambous, Tax-News.com, Cyprus

03 December 2001

Cypriot Finance Minister, Takis Klerides, presented the findings of a survey last week which canvassed the general public's opinion and awareness of the government's proposed tax reforms.

According to reports from the Cyprus Mail, the survey revealed that a third of the island's citizens are unaware of many of the tax reforms. About 36 per cent of those questioned viewed the reforms in a positive light, 31 per cent disagreed and the remainder either refused to answer or said they did not know enough to comment.

Klerides said that Cypriots should be aware of the need to raise indirect taxes for harmonisation with the European Union aquis communautaire. Only 31 per cent of interviewees agreed with increasing the VAT rate and 28 per cent approved of increases in other consumption taxes.

Furthermore, 35 per cent of respondents said they agreed with the new unified tax for both domestic and offshore companies, and 20 per cent disagreed.

An incredible 45 per cent of respondents claimed they could not comment because they had not received enough information from the government, and many asked for more information on company tax, particularly for offshore companies and tax breaks to companies that are either reorganising or merging.

Meanwhile, the government has declared that it wants to replace the flat rate tax of 0.6 per cent on stock exchange transactions with a capital gains tax but it is not ruling out imposing both measures. The House Finance Committee is discussing the possibility but no decision has yet been announced.

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