Cypriot parliament ‘in row over VAT cut’
Tuesday April 7, 2009
The Cypriot parliament has been discussing a three per cent reduction in VAT for restaurants in the country, it has been reported.
All parties except AKEL have agreed to the government’s proposed VAT drop, which would see a reduction from eight per cent to five per cent solely for hotels and tourist packages, according to the Cyprus Mail.
The majority of leading political parties in the country said the government was "offering favourable treatment to tourists at the expense of locals".
It is believed a decision ion the VAT cut will be made later this week after the notion is submitted to the Plenum for approval.
Maria Kyriacou, MP for DISY, told the newspaper: "This is unfair competition; it is discrimination at the expense of Cypriot tourists."
The comments from Ms Kyriacou have been echoed by the Cyprus Association for Restaurant, Bar and Nightclub owners.
It was recently reported the Czech government is planning to lower the value of VAT across its service sector, including restaurants, from 19 per cent to nine per cent.