Data provided by McGregor BFA
All data is delayed
Loading...
See More

Cyprus scraps tax on smaller deposits

Mar 19 2013 12:22 Reuters

A woman holds a banner during a protest outside of the parliament in Nicosia, Cyprus. (Petros Karadjias, AP)

Related Articles

Cyprus 'unlikely' to pass bank tax law

Cyprus scrambles to rework bank tax

Cyprus MPs postpone bailout session

Russia: Cyprus deposit tax 'dangerous'

Cyprus faces recession 'for decades'

Cyprus suspends stock market trading

 

Nicosia - Cyprus's revised draft bill for a levy on bank deposits scraps the measure for savings under €20 000 but does not compensate for the resulting lost revenue by raising it for the wealthy.

The draft, seen by Reuters, did not say if the new structure for the levy raises the required €5.8bn European officials have demanded in return for €10bn in aid.

The bill sets a zero percent levy on deposits of up to €20 000, a 6.75% rate for amounts between €20 000 and €100 000 and maintains a 9.9% tax on all deposits above that level.

Under a previous agreement struck by euro group finance ministers on Saturday, all deposits below €100 000 would have been taxed at 6.75% and everything above at 9.9%.

After an outcry in Cyprus and abroad against the move, eurozone finance ministers urged Cyprus on Monday to scrap the levy below €100 000 to spare small savers, and raise it instead for richer bank clients, to 15.6%.

But Nicosia was reluctant to agree to such a move because it fears it would scare away foreign depositors, mainly from Russia, and undermine the country's banking-based business model.  

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

cyprus
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
5 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 
 

No DA, EFF coalition

The DA and the EFF have denied reports of a possible coalition between them after the 7 May elections.

 
 

Latest elections multimedia

DA won't get 30% - Zille
The EFF's ad was banned, see why
Why Jack Parow wants you to vote on 7 May
The ad the SABC doesn't want to air

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...