Tax policies and their effects on the economy discussed at the meeting chaired by President Ersin Tatar
President Ersin Tatar heads meeting of economists and tax experts where the state of the economy is discussed
The TRNC economy and tax policy issues were discussed in a meeting chaired by President Ersin Tatar at the Presidency, which was attended by economists and leading tax experts.
Emphasis was made on the importance of taking concrete steps against tax losses in light of the rate of inflation, the black economy and informal economy.
Price fluctuations in the markets and the negative impact this is having on the narrow and fixed incomes of people were discussed as well as how inflation and high cost increased the informal economy -- or economic activity that are not formally registered.
The general view in the meeting was that the price of basic foods needs to be relisted and that the tax collected for these products needs to be reviewed.
It was pointed out that direct taxes (such as income and corporate taxes) should be brought to the level of the EU and international norms by focusing on the indirect tax rate of 40 per cent, which constitutes approximately 60 per cent of the budget (VAT, BSIV, FON).
A view has been put forward by experts, that even if the world's most perfect tax laws were made, there is a definite need for Tax Administration and its staff, to enforce such laws, which should be strengthened and reorganised in order to establish reassuring and fair practices.
The meeting was attended by Kemal Özçakır, Göksel Saydam, Hakan Ergin, Ahmet Manavoğlu, Niyazi Akman, Salahi Ergin and Presidential Political Affairs Advisor Anıl Kaya.