As part of €10 billion bailout from the EU and the IMF in 2013, the government approved a series of tax hikes, such as increasing corporate tax to 12.5% from 10% and increasing VAT and a doubling levy on interest income.

When fiscal conditions permit it we will return it to the private sector annually either via tax reduction or increasing development spending, he said, speaking in an event organised by the Federation of Employers and Industrialists.

Georgiades added that Cyprus in a position to financed its needs through the capital markets and therefore the basic reason for financial assistance package ceased to exist.

Recalling that the economy has emerged from recession registering higher growth rates than anticipated, Georgiades warned that one year of growth is not enough to cover the ground lost in a deep recession that started in 2009.

Source: Famagusta Gazette