Nicosia: Finance Minister Makis Keravnos announced the government’s readiness to accept an increase in the tax-free threshold following a nearly two-hour meeting with representatives from parliamentary parties DISY, DIKO, EDEK, and DIPA. In addition, he confirmed an increase in the income threshold for families with five children to £200,000 and the abolition of stamp duty.
According to Cyprus News Agency, Keravnos noted the convergence of views during the meeting, indicating that amendments within government-accepted margins are expected from the parties for tax reform progress. He emphasized the government’s understanding of scaled subsidies in relation to the number of children and the increase in income criteria thresholds, particularly accepting a high family income threshold for families with five or more children to provide relief.
Keravnos further stated that they agreed on abolishing stamp duty to simplify procedures and reduce excessive regulation. The Ministry of Finance has identified points of agreement while maintaining fiscal stability, and parties are expected to table amendments within these frameworks.
Both the Finance Minister and parliamentary party representatives mentioned the upcoming meeting of the Parliamentary Finance Committee, where details of the tax scales will be announced. Finance Committee Chair and DIKO MP Christiana Erotokritou expressed satisfaction with the Minister’s positive reception of party suggestions, which will soon be submitted as amendments to significantly increase tax-free income and adjust tax scales for lower and middle-income taxpayers.
The amendments will also propose increased deductions for minor children, students, and expenses related to loan servicing and rent payments. Addressing concerns about the percentage of untaxed workers, Keravnos estimated that this percentage could rise to around 65%.
Keravnos assured that all actions would align with the strict fiscal policy the Ministry of Finance has been following. Addressing professional bodies’ concerns regarding foreign investment, Erotokritou confirmed that the Minister considered all positions to ensure the Cypriot economy remains competitive in attracting foreign direct investment.
DISY MP Onoufrios Koulla, alongside MP Savia Orphanidou, reiterated that the proposed tax reform amendments align with their party’s direction and that of other MPs on the Finance Committee. He stressed the need for a parliamentary majority and government consent to achieve a positive outcome.
DIPA MP Alekos Tryfonides noted the convergence between party amendments and the Minister’s proposals, highlighting DIPA’s focus on assisting low-income earners, the middle class, low-income pensioners, vulnerable groups, single parents, and businesses.