Cyprus continues tax modernisation

Cyprus is about to exit its economic adjustment programme and is standing again on its own feet, having regained its credibility as a country and as an economy, Finance Minister Harris Georgiades has said.

Speaking during an event, organized by right-wing Democratic Rally party on the future of the services and of the financial sector in Cyprus, Georgiades noted that the government will continue promoting tax incentives, while modernising taxation.

Trust and credibility "are not just words" but are won through the implementation of credible policies, reliable supervision and regulation of either the banking sector, or insurances or investments, the Minister said.

He added that supervision and regulation are tantamount to trust and credibility, that in turn are a synonym for success. Credibility is safeguarded through sanity in public finances, while it averts the disruption of the tax system, shielding it from additional taxes, the Minister went on.

Georgiades continued by saying that balanced public finances allow the state to promote incentives and tax cuts, while modernising the taxation framework.

Cyprus has already embarked on this effort, since last year, when the country was still implementing the programme that has been agreed with its international lenders, the Minister has said.

This effort will continue guiding the orientation of the government`s economic team in the period that will ensue, he concluded.

Under Secretary to the President Constantinos Petrides said while addressing the same event that effectiveness of the private sector, coupled with a prudent and effective policy pursued by the government, have lead past the programme`s exit into building the foundations of a solid economy.

Doing well in the various competitiveness indexes, which in the past was only a topic of theoretical discussion, needs to be the target of the government, said Petrides, while adding that there is a particular plan that has been laid out for the next couple of years.

He referred to the reform package of the public administration, noting that it needs to be approved by the House immediately. Designs for 2016 include a series of reforms that will increase the competitiveness of the economy, the Under Secretary to the President concluded.

Source: Famagusta Gazette