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The list of double taxation avoidance agreements seems to be getting longer, as two more protocols were signed recently – one with offshore Jersey, for which Britain has succeeded to secure derogation, while accusing other countries of being ‘safe havens’, and the other with India.
The second one is in anticipation of the visit to Cyprus of Prime Minister Narendra Modi, the pro-business leader who has attracted billions worth of new investments in innovation and renewable energy, primarily by pushing for far-reaching reforms and creating a favourable environment for investments.
Modi’s visit in September must not be limited solely to signing protocols and showing the Prime Minister and his entourage around the island. India has been enhancing its position in Asia and is competing with China on many levels, often even surpassing them on issues of quality in output.
Cyprus has a lot to learn and should push for closer ties, even though Modi’s visit is far overdue, probably because of the delay in removing Cyprus from the watch list that New Delhi has in place in order to clamp down on tax evaders.
But that is not all. India is spending billions in mega installations of solar parks in an effort to cut down on fossil fuel pollution and, of course, to utilise the free resource of sun power, a strategy that still has not been warmly embraced by Cypriot authorities.
Apart from the occasional research project at some of our academic institutions, there is no serious effort on a national level to encourage more use of solar power, especially as the main resource is free.
Perhaps, bilateral cooperation with India ought to consider this option as well, as Cyprus is clearly not a niche player in financial services and has no manufacturing output, while our agriculture and tourism sectors are often uncompetitive.
With shipping and energy promising new and vast prospects in the future, Modi’s visit will be a great opportunity to strike closer relations, before any other neighbouring country decides to jump on the bandwagon and Cyprus is once again left out in the cold.
