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 Objavljeno: 22 Dec 2018 09:47 Naslov sporočila: The VAT Gap study was pa |
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by Petros Petrides
NICOSIA Tyler Ervin Color Rush Jersey , March 17 (Xinhua) -- One year after receiving bailout assistance which pulled it back from an uncontrolled default, Cyprus was able to proclaim its economy back on track -- but still plagued with problems.
"The economy is on its way to a stage where it can be supported without relying on outside assistance," Finance Minister Haris Georgiades told the state radio on Monday.
"We can achieve this by diligently applying the adjustment program," Georgiades said on the event marking the one year anniversary of bailout memorandum signed with the Euro group and the International Monetary Fund (IMF).
Georgiades said the spreads of government bonds have declined to the level of June 2012.
"This means we can look forward to returning soon to the markets for financing," he said.
However, the Cypriot economy is shackled by several problems.
"The economy is still weak as the recession is there and unemployment is on the rise," said Georgiades.
The recession is fueled by lack of cash to finance new investment and restart the economy.
Georgiades said that by the end of May at the latest, all restrictions on internal bank transactions will be lifted, leaving in place only a ban on transfer of capital abroad.
International restrictions are expected to be lifted by the end of the year.
The economy was at its worst at the start of 2013 but recession has been much less than projected by the troika of the European Commission, the European Central Bank and the IMF.
Most recent data put the recession in 2013 at 5.4 percent compared with the troika projection of 8.7 percent. The economy is expected to contract by a further 5.3 percent this year but is projected to return to a modest 0.9 percent growth in 2015.
The outcome of the crisis in Ukraine is a factor to be reckoned with as the vital tourism sector depends to a large extent on the expanding Russian tourism market -- and to a lesser extent on the Ukrainian market.
The Gross Domestic Product (GDP), which peaked at 17.5 billion euros (23.6 billion U.S. dollars) before the crisis, has been held back to just over 16 billion euros in 2013 as a result of a general reduction of private income.
Public sector salaries and pensions were cut by 3 to 4 percent and are expected to stay stable this and next year.
Conditions in the private sector are much worse. Salaries were reduced to a bigger extent as unemployment has reached 17 percent and is expected to peak at 19.2 percent at the end of this year.
Unemployment is projected to start declining next year and end at about 18.4 percent at the end of 2015, still a high level.
The public debt will reach 121.5 percent of GDP this year and will peak at 125.8 percent of GDP in 2015.
However, economists concur that overall Cyprus is on the right track given the upheaval of last year.
Marios Zachariades, a professor of economics at the state University of Cyprus told Xinhua that his assessment of the situation is that the economy is in good shape, especially as regards public finances.
"It will depend on the GDP this year and in 2015 whether Cyprus will need additional economic assistance," he said.
"
BRUSSELS， Sept. 6 (Xinhua) -- A study funded by the European Commission showed that about 159.5 billion euros (about 179 billion U.S. dollars) in Value Added Tax (VAT) revenues were lost across the European Union (EU) in 2014.
The overall difference between the expected VAT revenue and the amount actually collected (the so-called 'VAT Gap') amounted once again to a high yearly figure， according to figures released by the European Commission on Tuesday.
The VAT Gap rate ranged from a high of 37.9 percent of uncollected VAT in Romania to a low of only 1.2 percent in Sweden. In absolute terms， the highest VAT Gap of 36.9 billion euros was recorded in Italy while Luxembourg had the lowest: 147 million euros.
Compared to 2013， the 2014 VAT GAP has decreased by 2.5 billion euros， but individual performances of member states still vary enormously when it comes to VAT compliance.
""Today's report is evidence that while some member states have improved their VAT revenue collection， substantial progress can only be achieved if member states agree to make the current EU VAT system simpler， more fraud-proof， and business-friendly，"" according to a Commission press release on Tuesday.
The VAT Gap study was part of the Commission's work to reform the VAT system in Europe and to clamp down on tax fraud and evasion.
The Commission adopted the action plan on VAT in 2016. The plan describes the necessary steps that need to be taken towards a single EU VAT area， and how to adapt the VAT system to the realities of the internal market， the digital economy， and the needs of SME's.
The Commission will table legislative proposals in 2017 to re-establish the principle of charging VAT on cross-border trade within the EU. (1 euro = 1.12 U.S. dollars)
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