 |
|
|
 |
|
| |
|
| Lowtax Network Sites |
| Lowtax Network Portal:
'Low-tax' business and investment in the top 50 jurisdictions covered in
exceptional detail. |
| Tax News: Global
tax news, continuously updated through the day. |
| Investors Offshore:
The independent offshore and alternative investment guide for expatriates
and the globally aware investor. Sponsored by HSBC
Bank International. |
| Law & Tax
News: Daily news and background data on tax and legal developments
for international business. |
| Offshore-e-com:
A topical guide to offshore e-commerce focused on tax and regulation. |
| Lowtax Library:
One of the web's largest and most authoritative business and investment
information sources. |
| US Tax Network:
The resource for free online US taxation information, covering: corporate
tax, individual tax, international tax, expatriates, sales and e-commerce
tax, investment tax. |
| Personal
Business Tax Guide: Providing essential tax news and information
on business for contractors, entrepreneurs, professionals, small businesses,
artists, sportspersons and entertainers. |
| Offshore Trusts
Guide: OTG publishes news, features and newsletters on the use of
offshore trust structures. |
| TreatyPro: Online
tax treaty resource. |
|
|
| IMF Supports Cyprus's Efforts Towards Fiscal Discipline |
by Lorys Charalambous, Tax-News.com, Cyprus
Wednesday, September 08, 2010
The International Monetary Fund (IMF) has spoken out in support of the application of the Excessive Deficit Procedure of the European Union in respect of Cyprus, which has prompted adoption of a program of fiscal consolidation aimed at reducing the fiscal deficit to 4.5% of Gross Domestic Product (GDP) in 2011 and below 3% in 2012.
The IMF says that Cyprus's fiscal deficit widened sharply in 2009, mostly reflecting structural factors. In particular, expenditures rose sharply on the back of higher wages and salaries, social transfers, and investment spending. The IMF noted that the increases were for the most part permanent rather than one-off or cyclical.
Declining revenues reflected the economic downturn and the unwinding of exceptional revenues associated with the real estate boom of the preceding years. The cyclically adjusted primary balance declined by some 6% in 2009, imparting a large fiscal stimulus and resulting in a fiscal deficit of 6.1% of gross domestic product (GDP), according to the IMF.
The IMF welcomes the steps already taken to stabilize the deficit in 2010, but thinks that additional measures would be needed to reach the 2011 and 2012 fiscal targets. The IMF thinks that returning the economy to its potential growth path depends critically on a credible fiscal consolidation, continued market confidence in the financial sector, and structural reforms to improve competitiveness and the business climate.
With regard to the immediate policy challenge - to reverse the large structural fiscal deficit following the sizeable stimulus in 2009, with a view to preserving debt sustainability and creating fiscal space to guard against financial sector risks - the IMF notes that this would require more forceful action and wishes to see specific measures declared to achieve the goal. Containing the wage bill and better targeting of social transfers are seen as important elements.
.
|
|
|
|
| THE LOWTAX LIBRARY
One of the web's largest and
most authoritative business and investment information sources. Alongside
topical, daily news on worldwide
tax developments, you can receive weekly newswires or
access up-to-date intelligence
reports on a range of legal, tax and investment subjects.
FREE TRIAL NEWS SUBSCRIPTION
Our 16 constantly updated
intelligence reports cover every important aspect of 'offshore' and international
tax-planning in depth, including banking secrecy, the EU's savings tax
directive, offshore funds, e-commerce, offshore gaming and transfer pricing.
Reports are available for immediate downloading or as subscription
services with news pages.
|
|
 |
|
LAWANDTAX-NEWS.COM
