The Republic of Cyprus will cooperate with the European Commission to promote pending taxation proposals during its EU Council rotating presidency at the second half of 2012, Deputy Minister of Finance and Minister of Labour and Social Insurance Sotiroula Charalambous has said after a meeting with EU Commissioner on Taxation and Customs Union Algirdas Semeta.
On his part, Semeta said he looks forward to a successful Cyprus presidency as regards taxation matters as well.
In statements she made to the press after their meeting at the Ministry of Finance in Nicosia, Charalambous said that “we have stressed that Cyprus as the presiding country of the EU during the second half of 2012, will work on pending matters which fall under mr. Semesta’s remit''.
Charalambous further expressed the view that “these matters are clearly very important”, adding that “progress on these issues will depend on the efforts made to find the necessary convergences between member states”.
These convergences, she noted, should take under consideration the particular circumstances of each member state as well as the economic environment within which Europe has to operate.
We have assured (Commissioner Semeta) of our good will to work together with the Commission to promote these issues, she said.
Semeta said that “there is a common understanding that we have to continue to work on major taxation proposals which currently in the Council such as the proposal on energy taxation directive, the proposal on common consolidate corporate tax base, the proposal on the financial transaction tax and the proposal on savings taxation”.
“I was reassured by the Minister that Cyprus will take these files very seriously and will continue the work which is now ongoing during the Danish presidency”, he noted, adding that “I am looking forward towards the success of the Cyprus presidency also in the area of taxation and customs”.
Replying to a question as to whether he expects some of these proposals to be completed before the end of 2012, and if so which, Semeta said that “we all know that tax matters are subject to unanimity in the Council so it is very difficult to predict when the agreement can be reached”.
He further said that “I think that we are very close to final agreement on the savings taxation”.
“We have also made significant progress on the common consolidated corporate tax base and I think that it is for the benefit of our business to conclude this file as fast as possible”, he added.
Semeta also referred to the financial transaction tax, pointing out that there are many member states which would like to speed up the process of negotiations.
“I believe that it would be possible to see a more clear future at the end of the Danish presidency”, he said.
Referring to the proposal on energy taxation he said the objective is to reach political agreement during the Danish presidency, expressing at the same time the hope that “this will be the case”.
