Kyrenia Post

Newspaper in North Cyprus

TRNC: New Economic Measures Announced

New Measures have been announced by Prime Minister Tufan Erhürman during a  session in parliament on the 14th of August which detailed initiatives including lowering VAT rates, fixing foreign exchange rates for rents, switching to multiple electricity tariffs, discounts in deed transfer fees and providing incentives to local or domestic production.

The series of measures are to help reduce the impact of the sharp fall in the value of the Turkish Lira. Pointing out that the country was going through a serious economic crisis, Erhürman read out the 23 sets of measures which the government will be introducing in the coming days.

Amongst the measures include lowering VAT on cleaning goods, certain foods, restaurant services and white goods.

Tax returns will also be provided to consumers using credit and debit cards with the aim of minimizing tax evasion.

The electricity authority will also switch to a multiple tariff system which will allow electricity prices to be lower at certain times of the day.

The price stabilization fund for alcohol and tobacco products will also be raised in order to close the gap in the price stabilization fund for fuel in a bid not to raise the price of petrol.

Among the other measures include levying a temporary additional tax on casinos and betting offices for a period of 6 months.

Limitations on foreigners purchasing homes and property in the TRNC will be preserved, however the current limitation which allows foreigners to purchase 1 apartment will temporarily be raised to 3 apartments for a period of 6 months.

Incentives will also be introduced for hotels to meet their needs from local and domestic producers.

Withholding tax applied on rents in foreign currency will also be reduced from 13% to 1% in exchange of fixing the currency exchange rate.

(Source: BRTK News)



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