Nicosia: President of Cyprus Nikos Christodoulides expressed on Wednesday hope that the House of Representatives will approve the Government’s proposal for tax reform, as the Cabinet was set to approve the relevant bills during its meeting at the Presidential Palace.
According to Cyprus News Agency, President Christodoulides expressed satisfaction that, 22 years after the last comprehensive tax reform, six bills on tax reform were being approved, in line with the Government’s broader policy of continuous reform. ‘This is a reform that reflects the clear ideological and political identity of our Government, which is Social Liberalism, and it runs through all our policies,’ he said.
The President said he was pleased that the proposals achieve the first key objective of a fairer distribution of the tax burden, strengthening the middle class, which he described as ‘the backbone of the economy and society.’ He added that families would also benefit through additional tax relief measures based on family composition, in recognition of the need to address the demographic challenge.
‘We are reinforcing access to home ownership, which is a major challenge, especially for the younger generation. We are substantially supporting large families and single-parent families,’ he noted.
He further said that the reform promotes female employment, taking into account that unemployment is below 5%, and that Cypriot businesses are being supported ‘to an unprecedented degree.’ The plan, he added, also advances the Digital and Green Transitions.
‘It is particularly significant that, under our proposals, in some cases the taxable income threshold exceeds pound 24,500, a pre-election commitment I had made,’ he said.
President Christodoulides expressed hope that Parliament would act swiftly so that the tax reform package can take effect in its entirety on January 1, 2026. ‘I would like to remind everyone that we first presented our framework in February 2025, followed by extensive consultations with all stakeholders. Now is the time for decisions. Now is the time for Parliament to act,’ he stressed.
He also noted that the Government’s responsible fiscal policy allows for the implementation of this bold tax reform after 22 years, a reform from which Cypriot citizens, businesses, and society as a whole will benefit.