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Tax of €1000 to profitable companies

22/06/2011 13:53
The government intends to impose a tax of €1000 to 100 thousand profitable companies in Cyprus so as to absorb additional revenues of €100 thousand per annum in 2011 and 2012.

In their statements after the meeting with President Christofias, OEB and CCCI Chairmen, Philios Zachariades and Manthos Mavrommatis said that the government expects to secure €100 million for the next two years.

The aim is the measure to be adopted from 1/7/2011, as the other one with the contribution of €70 million by the public employees for two years.

According to Mr. Zachariades, with this measure, the state’s fiscals will improve further.

He said that the improvement of the pension system in the public sector is a very serious issue and expressed the confidence that this problem will be solved soon.

Mr. Mavrommatis said that there are no margins for a delay in taking the fiscal consolidation measures and Cyprus must give the right examples abroad because the economy cannot bear further downgrading.

He also referred to the settlement of the pension issue the soonest possible.

“Responding to Mr. Christofias appeal, he declared that the profitable businesses are ready to examine positively the annual contribution of €1000 for two years”, he said.

At the same time, he made clear that the measure will concern all companies, the Cypriot and the foreign, that are registered in the Companies’ Superintendent and enjoy profits in the past three years.

The statements above were confirmed by Government Spokesman, Stephanos Stephanou and Finance Minister, Charilaos Stavrakis.

“The meeting today was held in positive climate and so did the one with the trade unions yesterday”, Mr. Stephanou stressed.

“The climate was also positive during the first talks on the increase in the property tax”, he added.

“CCCI and OEB pledged to discuss the issue and return with fresh deliberations the soonest possible”, he said.

“The government will continue its efforts against the structural problems of the economy”, Mr. Stephanou noted.

Similarly, Mr. Stavrakis confirmed that the anticipated revenues from the measure are estimated at €100 million per annum.

“There are currently 170 thousand registered companies, 70% foreign and 30% Cypriot. Certainly some of them are inactive and it is doubtful weather they can contribute. The measure will protect the small family businesses. According to those figures, if 100 thousand companies contribute, the revenues will reach €100 million”, he said.