With the tax reform we are effectively reducing the tax burden and increasing citizens’ disposable income, stressed the President of the Republic Nikos Christodoulides, on Monday, adding that it is a reform that creates a fairer, more modern, and more competitive tax system.
In his televised message on the tax reform, passed earlier today by the House of Representatives, the President stated that “from the first day we took over the government of the country, we have been moving forward with a clear plan and design, clear priorities, a strong ideological-political orientation, and a commitment to implementing our program based on social liberalism.”
Our goal, he added, is a modern, socially sensitive, economically strong, and nationally proud state.
Among the key pillars of our governance, he noted, is the modernization and transformation of the 1960s state through bold, structural reforms, reforms that correct chronic distortions, enhance transparency, improve efficiency, and restore the relationship of trust between the state and its citizens.
“And it is precisely in this context that the tax reform we have promoted, and which the House of Representatives voted on today, fits in. This is another decisive turning point for the future of our country. A reform that creates a fairer, more modern, and more competitive tax system,” he stressed.
With the reform, he said, we are effectively reducing the tax burden and increasing citizens’ disposable income.
He explained that the tax-free threshold is set at pound 22,000, while, depending on the composition and characteristics of the household, additional tax exemptions are offered, which for a household with two children can amount to a total of up to pound 10,000 extra.
At the same time, he said, families are supported, the middle class is strengthened, disposable income increases, the daily lives of our citizens improve, and at the same time, we are effectively strengthening the competitiveness of Cypriot businesses by reducing the tax on actual dividends from 17% to 5% and creating an attractive tax environment for investment.
“Undoubtedly, this is a reform that restores the balance between social justice and economic competitiveness. The benefits go directly to households, the middle class, families, and businesses. Less tax burden. More disposable income,” continued President Christodoulides.
‘With credibility and institutional seriousness, with a clear political orientation, with targeted reforms, we are changing our country, always for the benefit of its citizens’, he concluded.