"We will not proceed with the increase in the corporate tax rate" said Finance Minister Haris Georgiades, shortly after business leaders rejected his proposal.
In a statement, the Finance Minister said that since businesses are opposed to the proposal, there is no reason to insist.
The proposal submitted by the government to increase corporate tax from 12.5% to 15% was discussed today by the Cyprus Chamber of Commerce and Industry (CCCI), the Cyprus Employers and Industrialists Federation (OEB), the Institute of Certified Public Accountants (ICPAC), the Cyprus Investment and Promotion Agency (CIPA), the Cyprus Investment Funds Association (CIFA) and the Cyprus Bar Association.
News media declared that the business world unanimously rejected the Finance Minister's proposal, demanding its withdrawal.
In his statements, CCCI President Christodoulos Agastiniotis said that such proposals should be studied carefully, so as not to convey an image abroad that Cyprus has an unstable tax system.