Measures that should be taken to deal with the consequences of the Ukrainian war in Cyprus, the CCCI proposes in a letter to the President of the Republic.
The main problems that Cyprus is expected to face in the near future, according to the CCCI, are high inflation, which will lead to reduced sales and liquidity problems, high energy costs, limited quantities of cereals, shortages of raw materials expected affect the smooth running of several businesses.
For & # 8217; this CCCI proposes to the President of the Republic targeted measures to address the above. In particular, it proposes to reduce energy and fuel costs. To achieve this, the CCCI proposes to consider the possibility of temporarily suspending the compulsory use of biofuels in refined products.
of increased prices for livestock purposes.
Enhancing the resilience and independence of the economy in matters of energy self-sufficiency with emphasis on investments in the sectors of RES, energy savings and the arrival of VAT, is also proposed by the CCCI, including in the grant plan for the installation of photovoltaic systems and large companies. p>
In addition, it is proposed to strengthen the country's self-sufficiency in a number of products that are considered strategic for the survival of citizens and the smooth operation of industries, with emphasis on supporting the primary sector, as well as to provide incentives for the creation of larger storage facilities and grain silos and cold storage facilities that meet the necessary food storage conditions to increase the country's food storage capacity.
For the payment of these allowances the State must request, together with the other Member States, the creation of a Special Fund with EU money which will be given to the states to support households and businesses. At the same time, says the CCCI, the State should take advantage of the new EU decision to extend the period of implementation of the Stability Pact after 2023, which allows fiscal easing in order to support businesses and households.
In addition, the CCCI proposes horizontal measures. In particular, he proposes not to raise the issue of the minimum wage and the increase of the index for 2022, because it will increase inflation even more.
It also proposes the temporal extension of the State Guarantee Scheme to ensure Liquidity while deleting the term “non-layoffs” to support the additional liquidity needs of businesses. At the same time, it is proposed to increase the State Guarantees to 90% from 70% as was done in most European countries.
It also proposes the imposition of reduced VAT rates on several product categories to reduce costs to businesses and citizens and a reduction in additional energy taxes as long as the price crisis lasts.
In addition, the CCCI proposes the employment of Ukrainian refugees and the use of the legislative proposal adopted by the EU for the “Cohesion Action for Refugees in Europe”, while proposing a decision at European level to reduce import duties from third countries and the general abolition of import duties on shipping costs.
With regard specifically to the livestock sector, it is proposed to support farmers to purchase feed. The same is proposed to apply to fish farmers, while it is proposed to cover the cost of fertilizers and pesticides to farmers. At the same time, it is proposed to provide tax incentives for the development of new agricultural investments that will increase domestic food production and export potential.
For wholesale and retail trade, the CCCI states that they are considered sectors of high energy consumption and proposes to be included in the temporary framework of state aid for high energy costs, in order to transfer the benefit to the retail prices of products. In addition, it is proposed to provide a specific amount per means of transport to cover part of the increased fuel costs.
In the food sector in particular, it is proposed to demonstrate the necessary flexibility in labeling requirements, without compromising food safety and consumer information.
The CCCI states that the issue of staff shortages continues to exist in the retail companies and Horeca, for & # 8217; This suggests that applications for recruitment from third countries be considered.
The imposition of a “price ceiling” on products should be done with special care and sparingly, only in exceptional cases where there is a real tendency for notoriety, notes the CCCI, adding that the “ceiling” should be imposed on the percentage of profit and not on retail
Regarding industry and exports, the CCCI seeks support for those export companies that trade with countries affected by the war.
< p class = "text-paragraph">In addition, it calls for the creation of a Grant Scheme for the installation of RES energy storage systems in suppliers that will enter the competitive market, so that they can offer cheaper electricity on a 24-hour basis.
CCCI proposes the implementation of support plans to enhance export activity (participation in exhibitions), to cover travel expenses to find customers and to cover the increased costs for digital advertising – digital marketing.
Implementing an extraordinary partial subsidy plan for transport costs for a period of at least 3 months and supporting employment in industry with programs similar to employment support during the coronavirus period are other measures proposed by the chamber.
Finally, he proposes that a policy be adopted so that the documented effects of the war on the fulfillment of contractual obligations to the State are taken into account immediately for a change in the terms of the contracts. A similar policy has been adopted due to the effects of the pandemic.
In the construction sector, the CCCI proposes frequent revisions of prices on various materials in order to reflect current prices and not cause damage to contractors and to allow the extension of project deadlines up to 8 months. It is also proposed to modernize public procurement.
In addition, the CCCI wants to abolish the capital gains tax for a certain period of time, for those who purchase real estate by the end of 2022, exemption of all or part of the Tax resulting from the sale of real estate, provided that all or part of the sale price is reinvested in purchase of another property, extension of the transfer period of existing tax losses from 5 to 10 years and possibility of VAT refund on properties used for rent.
In order to keep rents at affordable levels, the CCCI proposes to provide incentives to young couples and young professionals to buy apartments instead of choosing the rental solution and to give incentives to institutional/private investors to buy real estate with the commitment that for example, they will rent them for a period of at least 10 years, in order to increase the supply of real estate.
In tourism, the CCCI proposes to put the electricity of hotels in the industrial tariff.
In addition, it reiterates its call for the employment of foreign staff from third countries, while calling for a reduction in VAT for tourism businesses from 9% to 5% and a reduction in airport charges.
Proposes also the differentiation of the product through targeted actions depending on the market and calls for the approach of new markets and/or the increase of the tourist flow from existing ones that present prospects, by enhancing the visibility.
It also calls for the exclusion of car rental companies from the 2023 license plate charge.
Finally, the CCCI proposes the return or exemption of VAT payment for capital expenditures in areas where there is a prospect of further development, such as Education, Medical activities, Research, etc.
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