Provisions introduced to the tax reform bills, altering, according to market stakeholders, its philosophy and initial design, as presented at the beginning of the year by the experts from the University of Cyprus' Economics Research Centre (CypERC) and the members of the advisory committee, have raised concern in the business world.
As InBusinessNews has already reported, the assessment made by the business world is that the proposed bills not only do not correspond to what was presented months ago at the Presidential Palace, but also include provisions that, if passed, will put the country at a disadvantage compared to other centres for the provision of professional services, while in addition, will also harm Cypriot businesses with additional taxes, as well as the abolition of specific incentives that were in force until now.
This is an evaluation which, on the other hand, finds its counterpart in the opinion that these provisions do not alter the reform and do not remove the generosity, as it is characterised, of its character towards the business ecosystem of Cyprus, but serve the necessity of simultaneously taking specific measures to combat tax evasion and build a tax culture.
Although the public consultation process is scheduled to end on 25 August, it appears that it will be extended for a few weeks, since the employer organisations have already submitted a relevant request, within an effort to study the bills even more thoroughly and present their views in a comprehensive and documented manner.
At the same time, the Cyprus Chamber of Commerce & Industry (CCCI), the Cyprus Employers & Industrialists Federation (OEB), Institute of Certified Public Accountants of Cyprus (ICPAC) and the Cyprus Bar Association are in congoing consultation and are preparing to join forces, in order - if possible - to jointly present their positions and opinions on the bills, since they include issues that concern all four organisations.
Philokypros Roussounides: There is concern in the business world
In his statements to InBusinessNews, the Secretary General of the Cyprus Chamber of Commerce & Industry (CCCI) Philokypros Roussounides stated that the collective bodies and the competent Committee of the Chamber are thoroughly examining the bills, noting that "it appears that there are certain deviations from what had been discussed and what was on the table since our initial proposals."
According to Roussounides , the CCCI Committee is expected to meet again in the third week of August to continue its study and "later we will be able to submit our proposals in a documented and much more substantive manner, article by article."
"We will not hide the fact that there is a concern in the business world, so we will seek a meeting with the authorities, so that we can discuss it thoroughly and see if there is a way to proceed with this tax reform, that is needed after decades, but at the same time, to ensure the attractiveness of our country as an investment destination, either from abroad or from within."
Asked if the Chamber's goal is to submit its views within the set timeframe, namely by 25 August, Roussounides said that "we have already requested an extension until 20 September, because given the time period we are going through in August where there were many planned trips abroad that could not be changed. On order to be correct and seriously positioned on such a very serious issue, more time is certainly needed. So we have requested - as I have said - an extension until 20 September and we are awaiting the response from the Ministry of Finance."
The decision to send the letter in question, he explained, was made after the meeting of the Chamber's collective bodies. "We decided to request this extension because there are too many and serious issues and time is needed to study and discuss them," he pointed out.
"We have also discussed this specific issue with other bodies, who expressed similar concerns regarding the proposed bills and therefore - I repeat - further time is required - and we hope that it will be given to us - to study the bills and submit opinions", concluded the Secretary General of the CCCI.
Michael Antoniou: There are issues that raise questions and concerns
On his part, the Director General of the Cyprus Employers & Industrialists Federation (OEB) Michael Antoniou, told InBusinessNews that "we are at the stage of studying and processing the bills."
As he said, "an initial assessment was made at the Competitiveness Committee and we are trying to move in coordination with other bodies on the issue."
Asked if they have noticed any differences in the bills from those that had been discussed, Antoniou stressed that "from the moment clauses are introduced into the bills, in a specific manner, and indeed with so many regulations, because the bills are dozens of pages long, it is obvious that things are changing that were not within the framework of the basic pillars of the reform."
"Now that they are becoming concrete - as with all bills, when they acquire specific content - there are issues that were not within the political framework," he explained.
"When you look at the details, issues arise that we need to discuss, both with the Ministry of Finance and with the Tax Commissioner, perhaps with the Government more broadly and, if necessary, with Parliament," added the OEB Director General, noting, "but at this stage, the consultation is with the Ministry of Finance and with the Tax Commissioner."
According to Antoniou, "the Tax Commissioner has already informed us that he is open and available to us for clarifications, to listen to observations, and we are fully intensifying the effort, in order to be constructive, productive and specific."
"There are issues that raise questions, queries and/or concerns, which we need to look at them in order for the tax reform to achieve its goal," he concluded.
(Source: InBusinessNews)
