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New Tax Bills Rejected - Parliament

charilaos stavrakisParliament has rejected new proposals for increases in corporate and property taxes in a move described by Finance Minister Charilaos Stavrakis as negative for the economy.

"We cannot put the economy on auto-pilot," said Stavrakis, who is faced with the task of halving the government deficit-to-GDP ratio by 2012.

The European Union has given Cyprus a deadline of 2012 to reduce its deficit to under three percent from six percent currently.

The finance ministry had proposed an increase in corporate tax from 10 percent to 11 percent and a re-evaluation of property tax from 1980 value levels to current value levels.

Meanwhile, the government slashed 400 public sector jobs in efforts to save 10 million euros this year, while MPs agreed to a 10 percent wage cut amounting to savings of around 100,000 euros per year for two years.



How Can the Government Improve the Economy?
By focusing on job creation
By reducing interest rates in government-owned banks
By changing the hours banks are open to normal working hours
By changing the hours govt. offices are open to normal working hours
By talking more positively about the economy
By reducing corruption and bribery in the state sector
All of the above
None of the above
Total votes: 33