Cyprus plans to complete a review of rents across the country’s 19 industrial and craft zones, the Interior and Commerce ministries told MPs, saying the aim is to set fair charges linked to actual use.

According to Stockwatch, Interior Ministry official Varnavas Pashoulis told the House commerce committee that the ministry had acted on the committee’s earlier guidance and coordinated closely with the Commerce Ministry throughout the process.

A preliminary table covering all unified industrial zones has already been prepared, he noted.

He added that the government does not want “excessive rents”, stressing that charges must be fair so that craftsmen and professionals can cope.

Pashoulis also noted that the two ministries “cooperate perfectly”, and that the full planning for the rent redetermination should be completed by year-end.

A representative of the Commerce Ministry confirmed that the process is progressing and that the new tables will be ready soon.

The legal service informed MPs that, once it receives the tables, it will draft the necessary regulations, as the implementation will require an amendment to the legislation.

The Finance Ministry, for its part, recognised both the scale of the problem and “the need to find a solution in order to support the industry”, adding that it will examine the regulations when they are submitted.

Employers’ groups the employers and industrialists’ union (Oev), the Cyprus chamber of commerce and industry (Keve) and Small shopkeepers’ association Povek also backed a use-based approach, saying rents should not be tied to local plans or land values.

They too said they will assess the regulations once finalised.

Disy MP Kyriacos Hatzigiannis said rents in several areas are now “out of control”, with some businesses being forced to shut down.

He added that a clearer separation of land uses is needed, as other commercial activities currently operate within industrial and craft zones. The committee is due to revisit the issue early next year, once the new list of rents is submitted.

Averof Neophytou argued that there should be a single pricing system unrelated to land value, calling instead for “a reasonable rent based on the use as an industrial and craft area and zone”.

At present, he said, identical businesses face different charges depending on which ministry or service oversees them.