Proposal on gradual reduction of tax rates

On 11 June 2008, the Finance Minister presented a proposal to the cabinet to gradually reduce corporate and personal income tax rates during the period from 2009 to 2015:

• The corporate tax rate will be lowered from 27% to 20%.
• The reduction of personal income tax rates will vary according to the income bracket. The tax rate in the lowest income bracket will remain 10%. The tax rates in the other brackets (currently ranging from 16% to 35%) will be lowered to a range from…