The Cyprus government on Wednesday announced a wide-ranging 100 million pound benefits and tax relief package aimed at improving living standards and closing the gap between rich and poor. President Tassos Papadopoulos said the package, equivalent to $233 million or about 170 million euros, was affordable as the government had reined in spending to ensure it met EU single currency convergence targets.
Papadopoulos, who is expected to announce later this month his plans to run for reelection in February 2008, also pledged "no new taxes" would be imposed on the Cypriot public.
The cabinet-approved measures need to be passed by parliament, although this is seen as a formality with the government holding a majority in the house. The package includes increases of up to 15.8 percent in low-end state pensions, a reduction in value added tax on some products and services to five percent from 15 percent, longer maternity leave, plus more money for people with special needs and the long-term chronically ill.
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