Quit if you can’t pay up – Prime Minister Irsen Kűçűk should step down or sack his Finance Minister if the 13th wage is not paid tomorrow. That is the call from the main opposition Republican Turkish Party (CTP) deputy Mustafa Arabacıoğlu as the government cash crisis continues to worsen. Mr Kűçűk had promised the 13th wage, due last month, would be paid tomorrow but there remains a question mark on whether the government can find 300,000TL it needs to pay that, along with this month’s wages and pensions. Finance Minister Ersin Tatar hinted at the problems facing the government when he revealed it was unable to borrow from local banks because there was no money to pay back any loan.
There is growing unrest over the increase in VAT and the government’s austerity measures, including wage reductions and the government is believed to be already considering changes to the recent VAT amendments. Mr Tatar blamed some of the problem on illegal workers, who he claimed accounted for 40 per cent of the economy.
Mr Arabacıoğlu said that “if the 13th wages are not paid by January 20th, either the Prime Minister should resign or dismiss the Finance Minister for misleading him and putting him in the position of being a liar.” He then suggested it would be better if the whole National Unity Party government quit.
VAT Rise to blame for water bill increase – Council bills across North Cyprus are set to rise after an increase in VAT on the water supply service from 1 per cent to 5 per cent. The rise comes as the cash crisis facing the TRNC state worsens, with municipalities likely to receive less support from central government, which could mean more increases in monthly bills. Currently the tax increase is only on the water supply and not on other services offered by the municipalities, including rubbish collection, street cleaning and lighting. It is part of controversial changes to VAT rates ushered in by the ruling National Unity Party.
VAT level scrapped in plan to stop budget crisis – The government has scrapped the 1 per cent VAT level as part of the measures to stave off the budget crisis. While some VAT rates have been scrapped, others have increased while import tariffs have lowered. Ahmet Manavoğlu, government revenue and taxation officer, told Cyprus Today “We have tried to tax the basic goods and services below 10 per cent. The maximum rate is 20 per cent now and there is no longer 1 per cent taxation”.
The new VAT rates are:
- Cigarettes and tobacco remains at 20 per cent
- Alcohol remains at 20 per cent
- Motor vehicles carrying up to 8 passengers remains at 20 per cent
- Firearms and ammunition remains at 20 per cent
- Jewellery products remains at 20 per cent
- Refrigerators and washing machines remains at 16 per cent
- DVD’s and VCD’s remains at 16 per cent
- Imported chocolate cut from 16 per cent to 10 per cent
- Locally made chocolate up from 8 per cent to 10 per cent
- Shoes up from 8 per cent to 10 per cent
- Liquid fuel cut from 16 per cent to 10 per cent
- Liquid gas tubes remains at 10 per cent
- Electricity remains at 10 per cent
- Tea remains at 5 per cent
- Milk products including cheese and hellim up from 1 per cent to 5 per cent
- Imported water cut from 16 per cent to 5 per cent
- Domestic water remains at 5 per cent
- Domestic transport remains at 5 per cent
- Municipal water services up from 1 per cent to 5 per cent
- School books up from 1 per cent to 5 per cent
- Sesame breads cut from 8 per cent to 5 per cent
- Bead (made from wheat flour) cut from 1 per cent to zero per cent
- Meat cut from 1 per cent to zero per cent
- Milk cut from 1 per cent to zero per cent
- Health services cut from 1 per cent to zero per cent
More strikes pledged in fight against cuts – Union leaders are due to meet tomorrow to consider the next move in their fight to improve the lot of the Turkish Cypriot people. There have been several strikes, including in schools, the tax department, by customs officers at courts and Lefkoşa Land Registry office. More strikes will take place said Mr Elcil, General Secretary of the Cyprus Turkish Teachers’ Union. The package of austerity measures is believed to have come out of AKP meetings held in Turkey and includes changes to working conditions of civil servants, reductions in staff, a freeze on recruiting and lowering of the overtime budget.
Replacement airline on schedule for take off – The TRNC’s new national airline was officially launched at a signing ceremony in Lefkoşa yesterday. North Cyprus Airlines three plane fleet, which is to feature the TRNC flag on the fuselage alongside the name, is due to take to the skies in March.
NB – from advert for Ankara Travel “Great news! The arrival of the NEW airline ‘North Cyprus Turkish Airlines’ due to start flying in March 2011. All passengers awaiting alternative flights with CTA will be able to exchange their tickets.”
Single sovereignty plans are rejected – The Turkish Cypriot side has rejected calls for a single sovereignty on Cyprus, with a side step to please the Greek Cypriots. Under proposals believed to have been tabled last week, TRNC President Derviş Eroğlu has suggested a separate guarantee for each of the two states of a reunified Cyprus. He wants the guarantee agreement of 1960 to remain but the Greek Cypriots want it to be scrapped. The Turkish Cypriot proposals openly state that the founding states will be sovereign, but in developing the new formula they will have been keen to stay within the United Nations’ parameters. The united Cyprus would have a single international identity but not single sovereignty. Dr Eroğlu, a nationalist hardliner, has talked of pushing for the TRNC to remain since becoming President in April last year – which is unlikely to appease Greek Cypriot concerns or win their blessing.
New information available for relatives of deceased Brits – Updated information is being supplied to the relatives of British nationals who die in North Cyprus following last year’s opening of Green Hill cemetery near Girne American University. An A4 “advice sheet” prepared by the British Cemetery Committee Kyrenia replaces an earlier document. The BCCK offers burial facilities for British nationals who are non Muslim and relatives of the deceased should contact its representatives, chairman Harry Fellows (825 2443/0542 852 0236) or Tim Harris (0533 845 2305)
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