Cyprus businesses should enhance their outward orientation, President says

Cyprus President Nikos Christodoulides said enhancing Cyprus’ outward orientation by attracting more foreign investments and promoting integration with foreign ecosystems, leveraging the potential of the digital economy is an important priority.

Addressing on Wednesday evening the 15th In Business Awards 2023 organised by “IN BUSINESS” Magazine and IMH, President Christodoulides said that the awards carry particular importance given the challenging economic environment and multiple challenges the island faces. He said both the state and businesses, are called upon to successfully respond to the realities brought about by digital transformation and the green transition.

He urged political leaders and party representatives present to cooperate in the House of Representatives so that “not a single cent is not lost from the assistance provided by the EU through the Recovery and Resilience Fund.”

Referring to digital transformation, President Christodoulides stated that “the state alone cannot achieve digital transformation. Therefore, in the coming days, we will publicly call upon companies dealing with this specific subject to collaborate with us, as was done in the case of Greece, to work towards digital transformation.”

Despite the multiple challenges, he continued, “I strongly believe that in the complex and competitive environment that we are experiencing, we can successfully respond and find effective solutions if we join forces, work collectively, away from populist or narrow political interests, and strive for a better, stronger, more resilient, and more competitive economy.”

Addressing the business community, he pointed out that both himself and his government see them as partners and fellow travellers in this effort.

Noting he will continue to support cooperation between the state and the private sector, President Christodoulides said that private initiative needs space to unfold and also the support of the executive authority when required.

It is a fact, said the President, that Cyprus, “through your own business growth and the contribution of the state, has shown dynamic progress in recent years, demonstrating its resilience and competitiveness. It is within this dynamic that we want to invest, to provide continuity and further impetus as a government, with policies aimed precisely at strengthening the competitiveness of the Cypriot economy, based on a broader vision for a new, modern, and expanded economic development model.”

He further said that among the key objectives is the creation of necessary conditions for the growth and expansion of Cypriot businesses, increasing trade and employment, and attracting productive and high-quality investments that will create quality jobs.

President Christodoulides also said it is acknowledged that the country’s tax system needs modernisation and simplification and one of the government’s first decisions was to initiate efforts for tax reform.

The main pillars of the tax reform being promoted are enhancing the competitiveness of Cyprus’ tax model, reducing administrative burdens for taxpayers, both individuals and businesses, and at the same time, providing fairer redistribution of the tax burden while maintaining fiscal neutrality. Simultaneously, he added, the goal is to align our tax policies with the objectives of the European Green Deal, within the framework of the promoted green tax reform.

He said that with great pleasure, he observes “that successful examples of significant and innovative businesses that have chosen Cyprus as their base for international activity” are among the candidates to receive awards.

He also referred to the government’s dedication to reform, noting for him it is a high priority and a personal goal.