No need for new taxes, assures Finance Minister

No need for new taxes, assures Finance Minister

Finance Minister Harris Georgiades said Friday there is no need and no thought of imposing new taxes, making it clear that the aim of the government is not to burden further the already depressed private sector.

The Minister also said that the intention of the government is to meet the timetables for the adoption of draft laws on insolvency framework.

Speaking on the sidelines of a ceremony for the signing of an agreement between the Republic of Cyprus, the University of Cyprus and the European Investment Bank, Georgiades said the state budget for next year has been prepared in a way that “it remains safely within the framework and objectives of the government, without the need for new taxes or new charges. ”

“There will be no need (for new taxes or new charges), and this is a clear target. The government`s aim is not to burden further the already depressed private sector, households and businesses,” he said, adding that the government could even marginally increase public spending with a very circumspect way, but without imposing any new burden.

On the contrary, he said, the government wants through tax stability to create a favorable environment for entrepreneurship and investment, and therefore “there is no need and no thought of new charges”, he reiterated.

The Minister of Finance noted that the economy is currently at a “crucial stage” of correction, which, however, is fragile and therefore “we should carefully and seriously continue the effort and the budget I think is moving along the same context, with realistic and conservative estimates”.

The Minister also said that the government`s effort has already begun to bring the first results in the fight against unemployment.

Asked whether the insolvency framework will be sent to the parliament on time for approval, Georgiades said that “our intention is to comply with the schedule”.

Excluded from the international capital markets, Cyprus in March 2013 received a €10 billion bailout from the EU/IMF to cover its financing needs and to avert the collapse of its banking sector, severely hit by the haircut of the Greek sovereign debt and soaring bad loans due to an economic contraction that began in the second half of 2011. The bailout included an unprecedented conversion of deposits to capital, also known as haircut, to recapitalize the island`s largest lender, Bank of Cyprus, which absorbed part of Cyprus` second largest bank, Laiki.