Tax reduction - relieving consumers during economic crisis

Asst. Prof. Dr. Hasan Rüstemoğlu, lecturer from the Faculty of Economics and Administrative Sciences, Cyprus International University (CIU) pointed out that the last week of February is celebrated as the Tax Week to create tax awareness and fight against the informal economy in all segments of the society.

Rüstemoğlu said that tax can be defined as the money that the government collects from individuals and institutions for public services, and he reminded that tax collection is also included in the constitution.

Three different tax categories have an important role for the income of the government: “These categories are ranked as income, wealth and expenses,” said Rüstemoğlu.

He explained that to create economic efficiency, basic principles must be followed so the taxes are collected properly: “In the first group, there are direct and indirect taxes; in the second group, specific name taxes; in the third group, personal and non-personal taxes; and in the last group, taxes on income, wealth and expenditure”.

It is important to collect taxes in TRNC as in the rest of the world because some discounts provide the convenience that is made by the states during the crisis to institutions and individuals, and also relives the economy.

Asst. Prof. Dr. Rüstemoğlu reminded that the VAT reduction has been made in the car market due to the 2018 crisis that its effects are continuing and thus, consumers can have relatively affordable vehicles in the crisis environment.

It was also suggested to apply discounts for other products without interfering government's tax revenue to relieve the consumers.