Once burnt, investors curb enthusiasm for India, ’s startups
Fact: India’s startups raised about 0 million in January and February, signaling a slow year after a six-year low of just billion in 2023.
Companies
SB 546 would end two business subsidies, cut corporate tax rate – The Sentinel
Under Senate Bill 546, corporate income taxes in Kansas would be reduced to 5.75%, and two business subsidies – PEAK and H-PIP – would be discontinued. Recipients of PEAK may retain or be refunded 95% of the payroll withholding tax of qualified employees for new jobs created in Kansas. Businesses participating in H-PIP receive a 10% tax credit for capital investment. The state’s current corporate tax rate of 6.5% would be gradually reduced under the legislation. Testifying in support of the bill was Dave Trabert, CEO of the Kansas Policy Institute, who argued that tax subsidies do not work for the economy or taxpayers. Jonathan Leuth of Americans for Prosperity – Kansas supported the bill, emphasizing the need for tax reform to remain competitive. Tim Henry, CFO of Great Plains Manufacturing and Kubota North America, opposed the bill, stating it would be detrimental to investment. Sam Sackett with Sprint AeroSystems saw merit in both lowering the corporate tax rate and preserving incentive programs. Mitch Robinson with the Kansas Economic Development Alliance also opposed the bill, highlighting disparities in H-PIP participation across counties.
Editorial. Interesting shift in tax contribution
Direct tax revenue is growing at a healthy rate, with net direct tax collection at ₹18.9-lakh crore, a 20% increase compared to the previous year. Personal income tax is driving this growth, with a 23% increase, while corporate tax collections have only grown by 12%. The tax base is not increasing at the same rate as tax collections, with the number of individuals filing tax returns growing at a slower pace. Since FY21, revenue from personal income tax has been higher than that from corporate tax.
US sanctions Cyprus-registered company for Russian links
A Cyprus-based company, Tokentrust Holdings, was sanctioned by the US for its links with Russia’s financial sector.
Morningstar DBRS keeps Cyprus at BBB, , ‘stable’ trend
Morningstar DBRS has confirmed Cyprus’ sovereign ratings at BBB (high) due to strong economic growth, but warned of exposure to geopolitical shocks and constraints from a small services sector. The stable trend balances favorable economic and fiscal developments against downside risks. Economic growth is driven by tourism, ICT relocations, and investment projects, with the Central Bank forecasting GDP growth to strengthen. Public debt has decreased, with further declines projected, and interest burden offset by favorable debt profile. Challenges include non-performing loans in the banking sector and low labor productivity. The ratings are supported by a stable political environment, sound fiscal policies, and EU membership.
Wood: building on an abundant natural resource
Forests in the EU can contribute to greening the European construction industry and support architectural improvements. In the Gironde department of France, a secondary school was built in 2022 using wood from local pine trees, aiming to utilize wood from nearby forests while preserving them. This project is part of the BASAJAUN research initiative, funded by the EU, which promotes the use of wood as a versatile and recyclable material. The initiative’s flagship is a wooden apartment building near the Pian-Médoc school, designed to demonstrate sustainable forest management and the potential for greening the construction industry. The building, made from non-local wood, features a disassemblable facade and uses natural wood fibre for insulation, highlighting the environmental benefits of using wood in construction. BASAJAUN aligns with the European Green Deal’s goals and the New European Bauhaus initiative, emphasizing sustainability, aesthetics, and inclusion in architecture. Buildings in the EU account for significant energy consumption and greenhouse gas emissions, with traditional materials like concrete and steel being energy-intensive. Using wood in construction can reduce the carbon footprint and even turn buildings into carbon sinks. The EU aims to ensure sustainable sourcing of wood to support biodiversity, ecosystems, and local communities. The potential carbon storage of new residential wood buildings in the EU is significant, and bio-based materials, including wood, currently represent a small fraction of building materials used in Europe. BASAJAUN has partners across 11 EU countries and has developed a system for digitally tracking wooden materials in construction. Another EU-funded project, WOODCIRCLES, focuses on recycling wood waste, aiming to address the challenge of its variable quality and promote the reuse of wood in a sustainable manner.
Computing, ’s quantum shift
European companies are participating in the global race to develop the next generation of computers, focusing on the potential of quantum computing to revolutionize fields such as drug discovery, healthcare, energy, and cybersecurity. Quantum computers operate on the principles of quantum physics, allowing them to perform certain calculations much faster than classical computers by being in a state of “superposition,” where they can process multiple possibilities simultaneously. However, current quantum computers are low-powered and offer few advantages over traditional computers. The NEASQC project, funded by the EU and involving universities and companies across Europe, is exploring the applications of quantum computing, including drug development and renewable energy enhancement. Another EU-funded project, QUCATS, aims to coordinate quantum computing research across Europe to strengthen the continent’s position in this field. European companies, recognizing the potential impact of quantum computing on various industries, are investing in research to explore its applications, with Airbus examining its use in aircraft design and LuxQuanta focusing on quantum cryptography to enhance online security. Despite the promising research environment in Europe, there is a concern about the lack of private investment compared to the US, highlighting the need for increased funding to support European quantum computing initiatives.
The fifth freedom: Corporate mobility within the EU
The text discusses the impact of Directive (EU) 2019/2121, which amends Directive (EU) 2017/1132, on the legal and business environment in Cyprus. This Directive enhances the mobility of companies within the EU internal market by facilitating cross-border conversions, mergers, and divisions, thus acting as an extension of the freedom of establishment. It aims to promote economic growth, competitiveness, and stability within the European single market by harmonizing rules and procedures across member states. The Directive includes provisions to protect the interests of shareholders, employees, and creditors during cross-border operations. Its implementation in Cyprus is expected to increase cross-border business activity, enhance competitiveness, improve legal certainty, and ensure stakeholder protections, but it may also present challenges in terms of compliance and adaptation for Cypriot companies. The text also notes that the existing Companies Law in Cyprus, CAP 113, already regulates cross-border mergers and the transfer of company seats in line with the Directive, but the new provisions on cross-border divisions represent a significant development for the Cyprus legal corporate system.
Cyprus banks: interest rate policies harming borrowers and savers
By December 2023, interest rates on Cyprus bank loans for house purchases had reached an average of 5.1%, compared with the average rate of 3.8% for other euro area countries. The average interest rate on Cyprus bank loans to corporations was 5.7% in December 2023, exceeding the euro area average of 5.1%. Cyprus banks had increased their profits by 600% to over €1.1 billion in 2023. The interest income of the two largest banks increased by €830 million between 2022 and 2023, mainly due to higher interest receipts from the ECB. Cyprus banks deposited around 35% of their assets at the ECB, earning from 2% to 4% in interest in 2023. Cyprus banks offered an average interest rate of 2.06% on fixed term deposits in January 2024, compared with an average deposit rate of 3.21% in the euro area. The net interest margins for Cyprus banks exceeded three percentage points, while the average for the euro area was just over one percentage point. The Bank of Cyprus announced that €112 million of their after-tax profit of €487 million would be distributed as cash dividends to shareholders, with a share buyback of up to €25 million.
Tales from the Coffeeshop: What is First Lady, ’s achievement?
The IMH conference organizer is promoting its Women Leaders’ Forum at the Hilton Hotel, featuring the First Lady of Cyprus, Philippa Karsera Christodoulides, as a speaker. The forum is titled ‘Achievement driven by women.’ Environment Commissioner Dr. Maria Panayiotou, who initiated a project involving biological oranges at the presidential palace, was later appointed minister of agriculture despite her lack of background in agriculture, largely due to her relationship with the First Lady. Agriculture Minister Dr. Panayiotou attended an event at the Cap St Georges Hotel and Resort, which raised concerns about environmental impacts on the Mediterranean Monk Seal’s habitat. Marios Pelekanos switched from the Disy party to Elam to run for the European Parliament, highlighting political opportunism. Yiannakis Nicolaou, the news boss of the state broadcaster, exhibited erratic behavior and dishonesty in his professional conduct. Archbishop Georgios criticized the exploitation of religious relics for financial gain and questioned the authenticity of the Holy Belt of the Virgin Mary’s visit to Cyprus, which was treated with state honors. Aristides Viketos revealed that the money found in the Avakoum monastery’s safe was more than reported, with allegations of misappropriation by Bishop Isaias.