Suggestions for measures to recover economic activity in Cyprus were recently submitted to the President of the Republic Nikos Anastasiadis by the Tourist, Commercial and Industrial Company of Famagusta (TEVEA).
A written announcement of the Company states that "the suggestions have been sent to the PD with a letter and aim to return to the pre-coronavirus situation as soon as possible and to mitigate the financial consequences of the coronavirus pandemic to companies and employees. The suggestions include proposals on tax incentives, measures to reduce business operating expenses, urban incentives, suggestions on tourism, retail, industry and the Cypriot investment program, and on business and employee support plans. announced by the government ".
Specifically regarding the tax incentives, the Company proposes, among other things, "reinstatement of the dividend reinvestment plan, provision of tax incentives to industries for the use of renewable energy sources and temporary reduction of VAT to 17% by the end of the year to stimulate the market. There is also a suggestion for a temporary reduction of VAT in catering and accommodation businesses to 7% instead of 9% by the end of the year to stimulate the market and abolish the provision for taxation and advance payment of taxes for the year 2020 and 2021 ".
Regarding the reduction of operating expenses of companies and measures to protect retail trade, TEVEA proposes, among other things, "investment by the state and the private sector in RES, e-government, digital upgrade of state and local authorities services, free traffic fees for private vehicles for 6 months and reduction of fuel taxes ".
It is also proposed "the reduction of other extraordinary contributions such as the special tax of the registrar of companies of € 350 per year per company, reduction of employers' contributions by 2%, increase of controls on products moving through roadblocks, when they will reopen and intensification of controls concerning the supply of fuel from the occupied territories, both to protect businesses from unfair competition and for health reasons ".
Regarding the urban incentives and the Cypriot investment program, TEVEA suggests to President Anastasiadis "abolition of the mandatory donation of 150 thousand euros to the state, electronic submission of applications for naturalization and in a way that enables the applicant to monitor the progress of the process and to know at what stage is his application. It is also proposed to add an amount of 50 thousand euros for the creation of a fast-track process for rapid examination of applications for naturalization in order for the application to be examined within 3-6 months at the latest ".
It is also proposed "suspension of VAT on land investments for development by foreign investors, suspension of VAT on development with consideration method, postponement of payment of transfer fees for agreed sales and will be executed from April 15 to December 31, 2020. Among other things, a suggestion is made for granting an urban amnesty with the payment of an amount for all constructions, provided that it does not exceed 20% of the permitted square meters of construction and abolition of the capital tax by the end of 2021 ".
For tourism, the Company suggests in its letter to the President of the Republic that "further support should be given to tourism businesses operating in a seasonal regime, as this makes them more vulnerable, reducing and / or subsidizing taxes at airports to reduce the cost of airfare." and making a coordinated effort by all stakeholders with the state to attract tourists during the period October 2020 - March 2021 ".
It also calls for "the simultaneous modernization of the Social Security Law for subsidizing work and not unemployment and the abolition of the obligation of the employer in the tourism sector to employ all its staff if it remains open during the winter. It is also proposed the rapid examination of applications and the issuance of relevant permits for projects that may help strengthen alternative forms of tourism and extend the validity of urban incentives that came into force in 2013 for the next 2 years.
Finally, TEVEA suggests to President Anastasiadis that "the Local Plans concerning the free province of Famagusta be issued immediately, since, as he states, this will bring benefits in sectors beyond tourism".
Famagusta.News