Covid-19. Additional steps to safeguard the Cyprus economy?

Our Chief Financial Officer, Alexandra Spyrou, recently published an article in Kathimerini newspaper. In her article Ms. Spyrou addresses the extraordinary circumstances which the global economy is going through, stressing that the full severity of the problem has yet to be revealed due to the current uncertain environment and a lack of available information. She analyses the measures that the Cyprus Government  has adopted to date to support  the economy and the businesses that are directly affected by the impact of Covid-19.  Following on from this, she sets out some concerns relating to their probable effectiveness, and expresses the hope that the government will proceed to further action to support employees and improve the liquidity of businesses and the self-employed. She believes that, in light of current uncertainties, such additional measures will be necessary in order to fully address social and economic concerns caused by the pandemic.

Ms. Spyrou proposes several tax initiatives which she believes would be effective in helping employers’ liquidity and in encouraging them not to reduce human capital, as well as, ensuring stability and security for the employees. These initiatives include: double tax deduction of wages, suspension of income tax payment for the underlying months of the crisis and, reduction in social insurance payments. Moreover, she stresses the importance of prudent handling of the very important sector of real estate.

Ms. Spyrou also focused on measures that could increase the tools and the means for an effective crisis response, highlighting the merits of encouraging special donations to support the health sector by giving associated tax deductions to the donor. Finally, she underlines the importance of the contribution of the private sector towards the huge medical expenses engendered by this crisis, as well as the financial support given to the public sector.

In order to access the article of Ms. Spyrou, please click here.