Question mark over whether parliament will sanction bailout

Question mark over whether parliament will sanction bailout

 

Although the House yesterday passed more tax bills deemed key for Cyprus to qualify for a foreign aid package, a question mark still hung over whether a fractious parliament would sanction the actual loan agreement to be concluded soon between the government and international lenders.

The plenum last night gave the nod to a series of government bills designed to raise state revenues: a corporate tax rate hike by 2.5 points to 12.5 per cent; doubling the tax rate on interest and dividend income (capital gains tax) to 30 per cent, via the defence contribution tax; and an increase in the bank levy on deposits raised by banks and credit institutions from 0.11 per cent to 0.15 per cent with 25/60 of the revenue earmarked for a special account for a Financial Stability Fund, applying retroactively as of January 1 of this year.