The Cyprus Chamber of Commerce & Industry (CCCI) has expressed its strong opposition to the imposition of additional taxation on banks, stating that "a strong economy requires a strong and stable banking system."
More specifically, in its announcement, the CCCI expresses its clear position that imposing additional taxation on the banking sector is not a sound economic choice, and emphasises that any taxation is in no way a social policy instrument.
As the Chamber underlines, the banking sector has already paid significant tax burdens during the period 2017–2024:
- €285 million in corporate tax
- €470 million in special tax on deposits
- Total contribution: €755 million.
"The State already has significant resources to support borrowers and vulnerable groups without the need to impose additional taxation," the CCCI continues.
At the same time, it expresses the following concerns:
- A blow to the stability and predictability of the tax and institutional framework.
- Negative message to international investors and undermining the country's credibility.
- Possible passing on of costs to borrowers, as has been pointed out by the European Central Bank.
- Creating a dangerous precedent of sector targeting with negative consequences for future investment activity.
- Deviation from the guiding recommendations of the International Monetary Fund and the European Financial Stability Mechanism.
- EU Member States with high credit ratings, such as Germany and the Netherlands, do not apply corresponding extraordinary charges.
The CCCI supports social support measures, which must, however, be designed in a way that preserves financial stability, investor confidence and the international competitiveness of Cyprus.
The CCCI expects all businesses in the country to return part of their profits through appropriate Corporate Social Responsibility tools.
"A strong economy requires a strong and stable banking system," the Chamber concludes.
(Source: InBusinessNews)
