Cyprus Stock Exchange Expresses Concern Over Proposed Tax Reform

Strategic Insights -

The Cyprus Stock Exchange (CSE) has voiced its strong opposition to the proposed tax reform, citing its exclusion of meaningful incentives for the capital market. Despite submitting well-documented recommendations to the government and the University of Cyprus's Economic Research Centre, the final provisions of the draft bills fail to include substantial measures supporting the capital market. The CSE sees this as a missed opportunity to boost business activity and attract strategic investments, which would positively impact the country's economy.

Key Takeaways:

  • The Cyprus Stock Exchange (CSE) has expressed deep concern and disappointment over the proposed tax reform, citing its exclusion of meaningful incentives for the capital market.
  • The CSE had submitted well-documented recommendations to the government and the University of Cyprus's Economic Research Centre, but the final provisions of the draft bills do not include substantial measures supporting the capital market.
  • The proposed regulations contain clauses that weaken existing tax incentives, particularly impacting the emerging companies market.
  • The CSE sees the tax reform as a unique opportunity to boost business activity and attract strategic investments, but the current provisions limit the role and mission of the stock exchange.
  • The CSE will submit its positions during the tax reform's public consultation phase and actively participate in parliamentary discussions, calling on the government and the House of Representatives to reconsider the regulations.
  • Internationally, many countries implement policies to support their capital markets through tax incentives, recognizing their role as drivers of growth.

Statistics:

  • The CSE submitted well-documented recommendations to the government and the University of Cyprus's Economic Research Centre.
  • The emerging companies market is negatively impacted by the proposed regulations.
  • The tax reform represents a unique opportunity to boost business activity through company listings on the Cyprus Stock Exchange.

Sources:

  • Cyprus Mail 2022