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The coronavirus pandemic has suspended plans for the complete modernization of the state, but we are facing a new reality "which constitutes a springboard to focus on further reactivating the economy and achieving long-term sustainable economic, social and environmental development," Interior Minister Nikos Nouris said on Tuesday.
In his address on behalf of the President of the Republic, Nicos Anastasiades, at the General Assembly of the Association of Major Developers. Nouris said that the success of this direction is also evidenced by the European Commission's forecasts for this year, "which recognise the strong recovery of the economy, with growth rates higher than the EU average and the strong dynamics of the Cypriot economy," he added.
The effort to reactivate the economy will include the Recovery and Resilience Plan, known as "Cyprus Tomorrow", which is expected to lead to a 7.1 per cent increase in GDP and the creation of more than 11,000 jobs, he said. In addition, he noted that significant investments in several of the priorities under the new economic model will also be promoted through the Thaleia Programme funded by the EU Cohesion Policy's Investment and Structural Funds.
Regarding the concerns of the Association of Large Developers, he said that the Recovery Plan would lead, among other things, to addressing the inefficiencies in the system of issuing and transferring property titles, improving the electronic system for issuing building permits, urban rezoning for the rational management and utilization of land.
In addition, he said, it is planned to diversify and further promote the tourism product, modernise the public administration and local authorities, reform and enhance the efficiency of the judicial system, fight corruption and strengthen transparency.
The new innovative procedure for fast-track planning and building permits for developments within 10 days, successfully implemented from October 2020, has also contributed to the strengthening of the construction industry, he added, and which, as of 1 January 2020, has been successfully implemented.
He also made reference to the new national strategy for attracting businesses to operate in Cyprus, which includes actions and provides tax and other incentives related to human resources and residence and employment permits, tax treatment, simplification and digitalisation of procedures, strengthening the Fast Track Company Licensing Mechanism, as well as promoting the country as an attractive destination for investment.
The 8th General Assembly of the Association of Large Developers was attended by officials from the political and business world, party leaders and high-ranking executives and members of professional associations, while the President of the Association Andreas Dimitriadis and the President of KEBE Christodoulos Agastiniotis also spoke.
In his speech, the President of the Association of Large Developers, Andreas Dimitriadis, expressed his strong concern and concern about the intense uncertainty and pending issues in the economic environment of the country, as a consequence of the pandemic crisis.
Regarding the Bill for the imposition of a reduced VAT rate of 5% for residences with a maximum area of 140sqm from 200sqm, he said that the Association expressed its opposition, considering it untimely, "especially in this period when the construction sector is facing a lot of problems", as the President said. He added that other European countries have much lower VAT rates on residential real estate, such as Greece, which has suspended for three years the VAT on the purchase of real estate and Portugal, which has applied a zero rate for all real estate transactions.
He added that in the last two years the activities of the large developments sector have been almost paralysed due to the pandemic, the abolition of the CCP and the lack of incentives for foreign investors. As a result of this negative development, he said, healthy businesses are at risk of closure, work worth millions of euros is suspended, orders for materials worth millions of euros are blocked and investments worth millions in Cyprus are cancelled or frozen.
Mr. Demetriades also welcomed the recent approval by the Parliament of the bills on public service reform and stressed the need to promote reforms in the judiciary, local government and bills that create a business-friendly environment. He stressed that it is necessary to fight corruption and corruption and to implement the necessary measures that will contribute to the inflow of foreign investments and, consequently, to the strengthening of the economy.
As Mr Demetriades pointed out, the Association's request is "the removal of bureaucracy, distortions and obstacles, so that the 25 major projects with a total value of more than 7 billion euros, managed by the Association's members, can proceed to implementation."
As Mr Demetriades pointed out, the Association's request is "the removal of bureaucracy, distortions and obstacles, so that the 25 major projects with a total value of more than 7 billion euros, managed by the Association's members, can proceed to implementation.
The President of the Association referred to the recommendations submitted by the Association of Large Developers in a memorandum to the Ministry of Interior, which aim to "improve and functionalize the existing Cyprus Permanent Residency Programme (PRP)". More specifically, it proposes urban planning regulations, such as the permanentization of urban planning incentives, the increase of the building factor by 20%, the abolition of the minimum useful floor area of apartments.
In addition, the Association proposes a series of tax incentives, such as the reduction of VAT and income tax to further attract foreign companies, the abolition of capital gains tax and the imposition of 5% VAT on all real estate until the end of December 2022.
In his address to the General Assembly of the Association, KEBE President Chr. Agastiniotis said that the large developments sector has been doubly affected in recent years: both by the impact of the pandemic and by the cancellation of the investment program with an impact on the local economy.
"The member companies of the Association, with their rich activity, invest millions of euros in the country, create thousands of new jobs, build infrastructure projects for the country, improve the tourist and investment image of Cyprus abroad and attract serious foreign investors," he added.
He noted that the CCBE, in close cooperation with the Government, is trying to improve investment incentives, to promote the new institution of Economic Diplomacy, to solve structural and structural problems that undermine large developments and to improve the environment in which businesses in the sector operate and act.
He added that the CCBE will continue to promote the image of Cyprus abroad. Already, many important business missions abroad are planned for 2022, in order to promote the investment and general business image of the country, he said.
Source: CNA
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