Cyprus Business Now

President Nikos Christodoulides on Thursday met with the advisory committee on tax reform, asking that progress on this matter be accelerated, in order to reap any benefits at the earliest opportunity.

The meeting, which took place at the Presidential Palace in Nicosia, also involved Finance Minister Makis Keravnos, and allowed the president to be briefed on the progress recorded so far.

In statements after the meeting, Keravnos said there is satisfaction that work is progressing at a satisfactory pace.

The goal of this tax reform, he said, is “to encourage entrepreneurship, relieve households, have a strong social character, and contribute to the fair distribution of income.”

He also said that the tax reform aims to address any tax evasion and avoidance, while it will also be fiscally neutral.

The largest global pitch competition, Startup World Cup, is making its debut in Cyprus this year, with the application phase for startups commencing on March 25, and entries will be accepted until May 12.

Consequently, the winner of the regional cup will have the opportunity to compete in the San Francisco Grand Finale and potentially win an investment prize from Pegasus Tech Ventures.

The recent annual tourism conference, organised by the Association of Cyprus Tourist Enterprises (Stek) with the support of Hellenic Bank, focused on discussing the future of Cyprus’ tourism industry and the new model needed to bolster it, for the benefit of the broader economy.

The conference theme, ‘Tourism: New Realities Demand a More Competitive Model’, delved into various topics including the green transition, sustainability, and resilience in tourism.

The economic climate in Cyprus experienced a downturn in March, with the Economic Sentiment Indicator (ESI) falling due to worsening business conditions across all sectors.

Specifically, according to the Centre for Economic Research (CER), the ESI in March dropped by 1.2 units compared to February 2024, settling at 102.1 units.

“The decline in ESI stemmed from the deterioration of the business climate in all sectors, mainly due to lower expectations for activity in the next quarter,” the CER said.

DP World, a global logistics company, hosted Transport Minister Alexis Vafeades and Shipping Deputy Minister Marina Hadjimanolis, at its Dubai Headquarters on March 25-26, according to a statement released this week by the company.

DP World Limassol’s CEO Simon Pitout stated that “DP World is a key partner of the Cyprus government and a major stakeholder of the maritime sector and the Cypriot economy“.

“I am pleased that the ministers had the opportunity to visit the exceptional facilities of Jebel Ali, one of the world’s biggest and most important ports,” he added.

Cyprus’ state budget deficit for 2023 increased by €80 million, compared to the deficit recorded in 2022, according to the state’s fiscal report submitted to the House of Representatives this week.

Specifically, the final state budget deficit for 2023 amounted to €980m compared to €900m in 2022.

Total revenues excluding inflows from loan receipts and repayments amounted to €8.72 billion for 2023, compared to €8.04 billion in 2022.

The Cyprus Stock Exchange (CSE) ended Thursday, March 28 with profits.

The general Cyprus Stock Market Index was at 144.45 points at 12:34 during the day, reflecting an increase of 0.05 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 87.74 points, representing a rise of 0.05 per cent.

The total value of transactions came up to €206,775, until the aforementioned time during trading.

In terms of the sub-indexes, the main and investment firm indexes fell by 0.28 per cent and 1.12 per cent respectively. The hotel index remained stable while the alternative index rose by 0.7 per cent.

The biggest investment interest was attracted by the Bank of Cyprus (+0.83 per cent), Hellenic Bank (-0.42 per cent), Logicom (-0.67 per cent), Demetra (-1.14 per cent), and Vassiliko Cement Works Public Company (+3.13 per cent).