Cyprus Requests Grace Period on VAT for Food & Clothing

During his two-day visit to Cyprus, the Maltese Finance Minister John Dalli met with his Cypriot counterpart Takis Klerides and exchanged views on the two countries' progress for EU accession. Speaking after the meeting, Mr. Klerides stated that Cyprus and Malta are dealing in a similar way with issues concerning taxation changes to achieve alignment and face similar challenges. The two ministers reaffirmed their countries' position to assist one another over their accession efforts.

Mr. Dalli also met with the Head of Cyprus' Negotiating Team for EU Accession, Mr. Georgos Vassiliou. Speaking after the meeting Mr. Vassiliou stated that Cyprus has asked to retain zero taxation on basic consumer goods, such as food and childrens' clothing, at least for a reasonable period. Mr. Vassiliou further stated that concerning offshore companies' taxation, there can be no exceptions and all members must comply with implementing the same taxation applicable to local companies.