Cyprus plans to hike VAT by two percentage points
The Cyprus government plans to hike VAT by two percentage points and increase a handful of other taxes as part of a watered down austerity package which aims to raise 600 mln euros, that may find resistance in parliament as it does little to reduce public spending and cut down on a bloated civil service.
Cyprus income tax receipts tumbled by 14% year-on-year to EUR 1.84 bln in 2009 from EUR 2.15 bln in 2008, according to the Inland Revenue Department, creating a gap of EUR 310.5 mln.