Marios Cosma: Recently announced tax reform "balanced and business-friendly"

Swift implementation of the tax reform is expected to contribute to the further credibility of the Cypriot economy, and it comes at a time when the economy was in need of such changes, acording to Marios Cosma, Managing Partner of K. Treppides & Co Group. He credits the involved government bodies for promoting the reform.

Speaking to InBusinessNews about the relevant framework of proposals submitted by the Economic Research Center of the University of Cyprus, Cosma said the tax reform, as presented by the drafting team, appears to be balanced and beneficial for Cypriot businesses. It also maintains tax advantages for foreign investments and foreign capital in Cyprus, which bring direct and indirect benefits to all social classes.

Benefits for Cypriot shareholders – Potential cost of living decline

At the same time, according to Cosma, the reform corrects a perceived imbalance caused by misleading arguments that suggested Cypriot businesses with local investors were at a disadvantage.

"With these reforms, Cypriot shareholders of Cypriot companies have benefited, which will contribute to creating a more competitive market," he pointed out, adding: "With proper treatment and management, it could even lead to a decline in the cost of living."

Need for targeted relief for the middle class

However, the Managing Partner of K. Treppides & Co Group also pointed out that it is surprising that the tax reform proposals did not include additional tax incentives for young families and targeted tax relief for the middle class.

"I believe that among the advantages of the tax reform, this sector will see indirect benefits over time, as Cypriot businesses will be able to increase the average salary of the middle and lower classes. This is accounted for through changes in personal income tax brackets," Cosma explained.

A timely reform for economic credibility

In conclusion, Marios Cosma said the tax reform is being introduced at a time when the Cypriot economy needed it. Its swift implementation will contribute to the economy's further credibility.

This, as he emphasised, is something for which all involved government bodies should be credited.