Defence levy stays, for now

THE Emergency Defence Levy, set for many at three per cent, will remain the same for the next three months during which time its structure will be re- evaluated, the House Plenum decided yesterday.

After a heated discussion lasting more than two and a half hours led to the National Council becoming involved and suggestions that the levy be incorporated into Value Added Tax (VAT) or depend on income scales.

Disy and Edek were in favour of the levy, raised by one per cent on August 1, 1998, initially to provide for the purchase of the S-300 missiles, being maintained until December 31, 2000, as proposed.

They said that a reduction would have negative consequences on the morale of both the island’s military forces and civilians. The two parties argued that any reduction would give the message that Cyprus had given up trying to protect itself.

Akel and Diko believed that enough had been spent on defence and said a standard levy was unfair to lower income classes such as pensioners. They suggested that the percentage taken off the levy be scaled in accordance with the type of income and its size.

The United Democrats, through Androulla Vassiliou, said they were in favour of the levy being incorporated into VAT, which would in any case have to rise because of EU harmonisation. She suggested rethinking the defence while it remained as now for three months, during which time it would be studied by the National Council. This was narrowly passed.

The Cyprus Mail is the only English-language daily newspaper published in Cyprus. It was established in 1945 and today, with its popular and widely-read website, the Cyprus Mail is among the most trusted news sites in Cyprus. The newspaper is not affiliated with any political parties and has always striven to maintain its independence. Over the past 70-plus years, the Cyprus Mail, with a small dedicated team, has covered momentous events in Cyprus’ modern history, chronicling the last gasps of British colonial rule, Cyprus’ truncated independence, the coup and Turkish invasion, and the decades of negotiations to stitch the divided island back together, plus a myriad of scandals, murders, and human interests stories that capture the island and its -people. Observers describe it as politically conservative.