And it is now looking for alternative ways to directly increase state revenue which was reduced in March by €100 million, Phileleftheros reports.

The law approved by Parliament a few days ago provides for the suspension of the imposed additional tax, interest charges and criminal measures for tax periods expiring on February 29, 2020, March 31, 2020 and April 30, 2020.  Provided, however, that those concerned have submitted tax returns for these periods.

The above regulation does not apply to supermarkets, pharmacies and other companies which have not been affected by the coronavirus crisis. In fact, the specific commercial activities had to pay 30% of the tax due before the withdrawn decree.

Taxpayers now are not required to pay advanced VAT on April 15. In addition, the Ministry has announced that it will issue new regulations for payment of VAT by companies whose liquidity has not been affected.

Insiders told Phileleftheros that technocrats of the Ministry are working on a bill making mandatory VAT payment by retail business establishments at the end of each month. Currently, business establishments pay VAT every three months.

According to the draft bill, tax payers who are active in the fields of electricity generation and collection and distribution of water will have to pay VAT every month.

The same obligation will also apply to grocery stores, supermarkets, butchers, fish markets, bakeries, patisseries, kiosks, gas stations, computer-related stores, bookstores and pharmacies.

The new legislation is expected to help the government increase revenue.

Source: In-Cyprus