Government proposes freeze in state payroll, tax on private sector incomes and companies

 

15:30 THE government is pushing for a freeze in the state payroll for two years as part of additional austerity measures that also include taxing high incomes in the private sector and a small levy on companies with domestic activities, it was announced on Friday.

The measures aim at restoring Cyprus’access to the international markets for its financing needs, lost after successive downgrades by all ratings agencies.

“Otherwise, Cyprus joining the EU support mechanism should be considered a given,” Kazamias said.

Finance Minister Kikis Kazamias said the state payroll freeze would save the state around €355 million in 2012 and 2013.

“This will be combined with a small charge – on a sliding scale – on the higher salaries in the private sector and taxing businesses with domestic activities a very small levy based on their turnover,” Kazamias said.

 

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