Minutes after business groups voiced opposition to a possible increase in corporate tax from 12.5% to 15%, Finance Minister Harris Georgiades said that given the absence of consensus he would not be pressing forward with it.
The minister had mulled possible changes with business leaders in a meeting last week.
But on Wednesday, after a meeting to discuss the issue business associations said they disagreed.
“We will simply not go ahead. It is not necessary to introduce a change now,” Georgiades told Sigma TV.
The proposal was in order to resolve some problems which arise in efforts to enter into double tax avoidance treaties and to be kept off black lists.
But the private sector’s position is important and given they are opposed we will not insist, he said.
Earlier on Wednesday, the Cyprus Chamber of Commerce, the Employers Federation, the Cyprus Investment Promotion Agency, the Institute of Certified Public Accountants and the Cyprus Bar Association held an urgent meeting on the issue.
Speaking after the meeting, Cyprus Chamber of Commerce president Christodoulous Angastiniotis said that serious study must precede discussion of such proposals so as not to create the image abroad that we are a country with an unstable tax system.