The chairman of the Turkish Cypriot Chamber of Commerce (KTTO) Fikri Toros, has warned of impending economic collapse in the TRNC.
The value of the Turkish Lira is at a record low and the cost of living in the north has gone up by 17%. He said that if the government did not take steps and soon, the situation would only get worse.
He proposed several measures to shore up the TRNC economy.
Turkey, for example, had reduced the Private Consumption Tax and the Value Added Tax (VAT) in order to prevent a cost of living increase, Toros said and asked the government to adopt the same measures in the TRNC.
Toros further argued that with some small touches to the market they could achieve much more mobility in the economy. He stressed the need to stop calculating taxes, duties and fees in foreign currency and to use the Turkish Lira instead.
Among KTTO’s other proposals to the government were the following:
- Fix the exchange rate
- Rearrange the withholding taxes and VAT
- Speed up state resources investments
- Implement the structural reform package
- Increase the credit support programmes in the real economy
- Implement the private-public model of partnership in the public sector