Cyprus considers property tax cuts as austerity package passed

The Cyprus parliament voted through a €220 million (US $319 million) austerity package this week as the island tries to stave off an international bailout.

The measures being put into place include cuts to the Cypriot public payroll and a move to force civil servants to make contributions toward their pensions.

Parliament has also raised tax rates on dividends, interest and income, introduced an annual business registration fee and increased property taxes.

Cyprus is trying to slash this year’s budget deficit to 5.5% of GDP from a predicted 6.5%, with the aim of getting it down to less than 2% in 2012.

Source: OPP.org.uk