Cypriots to face higher taxation

We've mentioned before that Cypriots are likely to face a lengthy depression following whatever bailout deal was taken. The island's main industry (offshore banking) has been closed for business and citizens will be unlikely to have access to credit, starving markets further.

Now it emerges that Cyprus will face tax hikes. Corporation tax will be increased from 10 to 12.5 per cent and income tax will rise from 15 to 30 per cent. Things are going from bad to worse for Cypriots.