We were probably full of foreign investors and probably tolerated the service sector to make profits. This is the message that comes out both through discussions on social media from reports on Brainocket’s jobs in Limassol, as well as what is happening with tax reform. Yes, there are distortions that need to be corrected. But you are not starting with those that may act as decompression valves for businessmen in the country. First you make what is bothering them, and then you get overwhelming and tightening the taxes. Otherwise, there are oranges in Valencia …
The news that much of Brainocket’s staff will be transferred to Valencia, Spain, did not concern the country enough. On the contrary, those who have to reflect have chosen to either silence or “model” the image and to degrade the fact. In private conversations, the opportunity to buy a property in Limassol were also heard. An indication that the Cypriot elite, sees foreign and local technology workers competitively. How even state officials have a problem that employees of these companies gain much more than them and how they are bothered to fall on the staircase of “importance” and purchasing power.
The result of this short -sighted perception was also reflected in the tax reform. From a gradual as announced by Finance Minister Makis Keravnos, he was found in the summer to try to end any looseness (perhaps the tax system) and to provide powers that make his powerful taxpayer (perhaps taxable). Without even being presented or discussed before! The information says that not even the architects of the tax reform are agreed to put these bills to be passed now. All they will succeed is to try the credibility of the country, the consensus of the House and to risk the venture itself, which at the level of rates, is clearly an improvement in the existing situation for both households and businesses.
The issue as, is not just procedural. It shows a lack of understanding of the problems and challenges facing those active in Cyprus. Seeing as a challenge to tighten the legislation, without preceding the simplification of the tax system and the separation of obligations into large and small businesses, which information says they will come later by the Ministry of Commerce! The procedures and digitization in the State have not even taken a modernizing course, so that the required transparency and proper service. These weaknesses are that “masquerading” any motives and loose tax practices that the government now comes to abolish.
Unless the state considers these motives that ultimately prevent us from becoming a more effective state. To remove them, to be forced to simplify and digitize the procedures. Otherwise, we will see foreign businesses taking their laptop and leaving like a “rocket” from the island for Spain or anywhere else in the EU looking for them with the lantern. Yes, the volume of real estate available for sale and rent will increase, and yes, prices will fall and the top officials and technocrats will return to the top of the purchasing pyramid. However, it will be reduced, income for many private sector, will send many Cypriots and not just foreign “foreigners” abroad and test the strengths of public finances and the ability of the state to support vulnerable groups and move on with growth costs. Do we want this?