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Solution could increase TRNC’s economic struggle

11 December 2016

A solution to the Cyprus problem will create many opportunities, but also cause difficulties, TRNC Economy Minister Sunat Atun has said.

Addressing the assembly on Friday, Atun said that there is economic imbalance between the two communities and drew attention to the importance of having a transitional period. He that his government supports the solution process and wants the Turkish Cypriots to join the world community

Atun said that after a Cyprus settlement is reached, there will be full freedom of movement as regards goods, services and capital and that indirect taxes will remain in the federal state, while direct taxes will go to the founding states.

Noting that the federal income will be used according to the population and national income, Atun pointed out that even though the Turkish Cypriot budget has improved through structural changes, an important part of the budget which is being discussed now at the assembly consists of credits and aid coming from Turkey.

Atun said that a big part of the budget is covered by indirect taxes and noted that following a possible solution to the Cyprus problem, some additional taxes might be needed.

Finally, he argued that the economic agreements between the TRNC and Turkey should be transferred to the federal structure in the event of a solution, as the current situation could create great financial difficulties.

Kibris

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