Cypriot business organizations oppose proposed emergency tax on bank profits

The Employers and Industrialists Federation (OEB) and the Cyprus Chamber of Commerce and Industry (KEBE) have issued statements opposing the proposed imposition of emergency taxes on bank profits. OEB argues that the banking sector achieved profitability only after a decade of restructuring, including a staff reduction of over 50% following the 2011–2014 financial crisis. The federation claims that international investors supported the sector with billions during the crisis without receiving dividends for years, relying on the stability of the tax framework. KEBE highlights that banks have already contributed 755 million euros to public revenue between 2017 and 2024, consisting of 285 million euros in corporate tax and 470 million euros in special taxes on deposits. Both organizations warn that new taxes could undermine Cyprus's credibility as an investment destination and create a precedent for targeting other sectors. KEBE further notes that the European Central Bank has warned such costs might be passed on to borrowers and that the measure deviates from IMF and ESM recommendations.