Klerides in Diko deal on VAT

FINANCE Minister Takis Klerides yesterday accepted the conditions set by opposition party Diko for backing his bill to raise VAT from eight to 10 per cent, paving the way for swift approval of the amendment.

The support of Diko’s nine deputies would guarantee the bill’s passage through the House of Representatives plenum on Thursday.

Diko had demanded that a number of tax-relief measures be implemented to counterbalance the VAT hike. These measures include abolition of the inheritance tax and levy for state broadcaster CyBC, as well as raising the tax-free threshold from the current ,5,000 to ,6,000.

Klerides said yesterday he had informed Diko that he accepted their conditions.

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