Filenews 3 July 2022
By Socrates Ioakim
In the context of the effort made to relieve households, due to inflationary pressures and punctuality, one of the issues that the government is considering is that of increasing the tax-free amount, which we should remind you today stands at €19,500. On the issue, however, Finance Minister Konstantinos Petrides had said that despite the fact that Cyprus has one of the highest tax-free allowances in the EU, the issue will be examined, adding, however, that the scope for increasing it is not great. In his recent televised statements, the President of DISY and candidate for President of the Republic Averoff Neophytou had said that the tax-free allowance could be increased only for 2023 to €25,000, stressing that in this way households can save annually an amount close to €1,000. In the column's view, this measure is correct, as the amount saved will be returned both to consumption and to the public coffers.
Final announcements on the matter are not expected before the end of the year, since the government's adviser is studying and examining some scenarios, which will be put before the Ministry of Foreign Affairs. Finally, we should mention that under study, with many chances of its implementation, there is also a proposal for the abolition of the annual fee of €350 that businesses currently pay to the Registrar of Companies.
Deal for a hotel in Nicosia
The approval of an offer for the purchase of the hotel "RIMI Hotel", in the Tripioti district, in the Municipality of Nicosia, was announced on its website by Gordian Holdings. It is a hotel located on the corner of Solonos Street and Aristokypros Street, 150 meters from Eleftherias Square and 70 meters from Ledra Street. The hotel abuts on a pedestrian street (Laiki Geitonia) along its eastern borders. It was renovated in 2000 and consists of ground floor, basement and three floors. The ground floor consists of a reception area, a living room, a restaurant, a bar, a kitchen, an office and an internal courtyard, which has been converted into a storage room. It has a total of 26 rooms on two floors. The property may qualify for the new government incentives to revive the interior of the walls in Nicosia.
€24m lost from illegal cigarettes
A significant increase in the consumption of illegal cigarettes in Cyprus was recorded in 2021, according to the results of the annual independent Report of KPMG, conducted on behalf of Philip Morris International. At the EU level, the consumption of illegal cigarettes increased by 3.9% in 2021, reaching 35.5 billion cigarettes (1.3 billion more illegal cigarettes than in 2020), with France recording a significant increase in the consumption of illegal cigarettes and maintaining first place.
More specifically, according to the KPMG report:
- In total, in 2021, EU Member States lost €10.4 billion in revenue because of the illegal trade in cigarettes.
- The percentage of illegal cigarettes in the EU amounted to 8.1% of total cigarette consumption.
- The illegal market in the EU was mainly boosted by counterfeit cigarettes, the consumption of which increased by 19% in 2021, reaching 12.3 billion cigarettes.
- The increase in the market for illegal cigarettes in Europe is largely due to the 33% increase in the consumption of counterfeit cigarettes in France.
According to the findings of the report on the illegal trade in cigarettes in Cyprus:
- A total of 140 million illegal cigarettes were consumed in 2021.
- The percentage of illegal cigarettes amounted to 14.4% of total consumption.
- The lost revenue for the public coffers in 2021 reaches € 24 million.
Wages increased in 2022 but...
According to preliminary data from the Statistical Service, the average gross monthly earnings of employees in the first quarter of 2022 are estimated at €2,019, compared to €1,891 in the first quarter of 2021, i.e. an increase of 6,8%. Average gross earnings adjusted for seasonal fluctuations in the first quarter of 2022 are estimated at €2,114 and compared to the fourth quarter of 2021 there is an increase of 1,0%. The increase, however, is fictitious, as it should be recalled that in the first quarter of 2021 the Special Plans of the Ministry of Labour and Social Insurance were in place to deal with the pandemic, resulting in reduced average gross monthly earnings.
Hotel renovations in Greece by Louis Plc
The significant investments for hotel renovations managed by the complex in Greece were mentioned by the Executive President of the Louis Plc Costakis Loizou. Specifically, during his speech in the context of the annual general meeting of the company's shareholders, he said that the Louis plc operates for the second year the five-star hotel unit Asterion Suites & Spa in Chania, Crete, while this year begins the operation of the completely new, also five-star, Once in Mykonos.
In addition, according to Kostakis Loizou, it has proceeded with extensive renovation and upgrade works of the Mykonos Theoxenia Hotel, while a large-scale renovation is planned for next winter at the hotel Louis Kerkyra Blue in Corfu, one of the two privately owned hotels of the complex on the island. Finally, regarding the group's results for the year ended December 31, 2021, Louis plc recorded an increase in turnover of 192.1% or €44.9m, compared to €15.4m. in 2020. The consolidated net loss after tax amounted to €30.3m in 2021.
Medical School in Limassol by Frederick University
Large investments in Limassol with the offer of new programs of study in Health Sciences and the expansion of its building facilities were announced this week by Frederick University, during the first of a series of graduation ceremonies of the academic year 2021-22. The announcement was made during her greeting by the president of the University Council, Natassa Frederick. As he mentioned, the new strategic planning of the University for the period 2022-2030 has as a key element the strengthening of the University in Limassol, with the development in the field of Health Sciences and in this context, the design of a Medical School, the only one based in Limassol, has begun a year ago, which is expected to operate in the next three years.
5 star hotel and 2 towers in Larnaca
The environmental authority has given the green light to the company Omicron Real Estate Ltd, for the construction and operation of two residential towers and tourist development under the name "Staston Project" in the municipality of Larnaca. The project will consist of tower A, 19-storey and tower B, 27 floors and a five-star hotel with 25 floors, 100.75 metres high. The towers will include a total of 97 apartments, cafes, shops, restaurants, a gym, a spa and two single underground parking lots, with a capacity of 218 seats. The hotel will have a capacity of 168 rooms and will include cafes, restaurants, bars, gym, spa, staff areas, management and maintenance areas and two underground parking spaces with a capacity of 133 spaces, of which eight for people with disabilities. The proposed project is located at a distance of about 500 metres north of the core of the Municipality of Larnaca and at a distance of about 500 metres southwest of the port of Larnaca. At a distance of about 200 metres southeast is the marina.
