CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.

Cyprus Government Fails To Pass Budget

Tuesday, December 22, 2020

Lawmakers in Cyprus have rejected the 2021 Budget, for the first time in the country's history.

The Budget provided that a reduced rate of value-added tax of five percent should apply to tourism services in the period July 1, 2020, until December 31, 2020, down from nine percent. Separately, a proposal was put forward by the Parliamentary Committee on Finance to allow taxable persons to pay their VAT dues in six monthly instalments, until April 2021, without the imposition of interest.

Lawmakers decided to block the Budget amid a dispute over a perceived lack of transparency regarding decisions made under the country's citizenship by investment program.