Nicosia: President of the Republic Nikos Christodoulides emphasized the benefits of a newly passed tax reform, highlighting its role in reducing the tax burden and increasing citizens' disposable income. Speaking on Monday, the President described the reform as a crucial step towards creating a fairer, more modern, and competitive tax system.
According to Cyprus News Agency, in his televised address, President Christodoulides reflected on the government's efforts since taking office, underscoring a commitment to implementing a program rooted in social liberalism. He articulated a vision for a state that is modern, socially sensitive, economically robust, and nationally confident.
The President outlined that a key focus of the administration is the modernization and transformation of outdated state structures from the 1960s. He emphasized that the reform is part of broader structural changes aimed at correcting long-standing issues, enhancing transparency, improving efficiency, and rebuilding trust between the state and its people.
The tax reform, passed by the House of Representatives, is described as a pivotal development for the country's future. It aims to reduce the tax burden and increase disposable income, particularly by setting a tax-free threshold at pound 22,000. Additional tax exemptions are available, potentially providing a household with two children up to an extra pound 10,000.
The reform also seeks to support families, bolster the middle class, and improve the daily lives of citizens by enhancing the competitiveness of Cypriot businesses. This is achieved by reducing the tax on actual dividends from 17% to 5% and fostering an attractive tax environment for investment.
President Christodoulides affirmed that the reform successfully balances social justice with economic competitiveness, offering direct benefits to households, the middle class, families, and businesses. He concluded by expressing a commitment to governing with credibility, institutional seriousness, and a clear political direction to benefit the country's citizens.