Reform Efforts in Public Finance
TAM’s President Serdar Denktaş made statements regarding the necessary steps to be taken concerning public finance. Highlighting the effects of cost of living and the issues within the public budget, Denktaş emphasized how the uncertainty created by constant borrowing and the interdependence of debts affects public perception.
Denktaş noted that using the profit share from the Central Bank for debt repayments over a certain period could contribute to reducing debts. He believes this approach would build trust within the public.
Tax Regulations and Savings
Denktaş stated that eliminating commissions taken from banks would create a positive atmosphere in the markets. He mentioned that with the reduction of income and corporate tax rates, taxes would be collected based on actual income. He expressed expectations that this method would help minimize the informal economy.
Additionally, Denktaş conveyed that with the income tax reform, instead of percentage calculations on earned income, tax demands would be proportional to expenditures. He emphasized that the portions saved through this change would be exempt from taxes.
Alongside reducing all debts and fund ratios, Denktaş indicated the need to identify advantageous products between the north and south. He noted that this would accelerate the flow of hot money between Northern and Southern Cyprus in the purchasing of these products.
Denktaş promised that a significant portion of the currently implemented incentive policies would be revised to become periodic, announcing plans to gradually transform Northern Cyprus into a free trade zone. He also shared that necessary equipment would be provided to make the ports suitable for transit trade.
Finally, Denktaş stressed that while the control of the assistance from Turkey to the TRNC should be conducted by Turkey, the prioritization of needs should rest with the TRNC government. He stated that having these investments undertaken by local companies would strengthen the TRNC economy.
Source: www.yeniduzen.com
