The Cyprus Employers and Industrialists Federation (OEB) is asking for six tax reliefs amounting to €500 million annually, according to General Director Michalis Antoniou.
He also told journalists at a working breakfast this week that the proposed tax reliefs will pave the way for state revenue to increase by €650 million within three years, as well as open about 9,000 new jobs.
The proposals are the following:
—The employers’ contribution to the Social Cohesion Fund to be abolished
—The employers’ contribution to the Redundant Employees Fund and to the Protection of Employees’ Rights Fund in the event of an employer’s insolvency to be reduced from 1.2% to 0.6%. The redundant employees fund’s reserve on December 31, 2018 stood at €447 million
—Resetting the tax rate for natural persons to 30%
—Reduction from 30% to 15% of the national defense contribution on interest rate of deposits
—Abolition of the mandatory company fee of €350 to the Official Registrar
—Abolition or reduction of the deemed dividend distribution.
At the same time, OEB’s board chairman George Petrou said that conditions are now mature enough for tax reliefs in return to payments to the island’s fledgling General Health Scheme (Gesy) and increased contributions to the Social Insurance Fund. Because this is how businesses can maintain their competitiveness.
He also said that, as far as the economy goes, OEB’s priorities are to maintain fiscal discipline with the aim of continually improving Cyprus’ credit rating and enhancing the Public–Private Partnership.