Large families of Cyprus sharply criticized the government, presenting their arguments at a meeting of the parliamentary committee on finance.
A major source of discontent is that the new tax reform ties benefits to income levels, effectively limiting access to support to those who family groups say are most in need of incentives to boost fertility. Representatives of the Pan-Cyprus Organization of Large Families emphasized that the country is already facing serious demographic challenges, and government policy aimed at solving them should be more consistent and flexible.
The organization's president, Dinos Olympios, reminded deputies that without real financial incentives it is impossible to expect an increase in the birth rate. The Ministry of Finance presented the main provisions of the reform, including a tax deduction of one thousand euros per child for each parent, as well as additional benefits for paying interest on a mortgage or rent of family housing and for costs associated with improving the energy efficiency of houses. However, only those families whose total income does not exceed eighty thousand euros will be able to take advantage of the benefits, and for families with more than three children the limit is increased to one hundred thousand.
For single citizens, the ceiling is set at forty thousand euros. During the discussion, Tax Commissioner Sotiris Markides rejected suggestions that eliminating income thresholds for families with seven or more children would lead to serious financial losses for the budget, since such families make up a tiny percentage of the population. At the same time, he noted that lifting restrictions for more common categories - families with three or four children - would become significantly more costly.
A study prepared by the University of Cyprus proposed alternative models that would help maintain fiscal balance. Scientists believe that a gradual increase in allowable income depending on the number of children will have virtually no effect on government spending. However, large families warn that the current thresholds effectively deprive them of recognized status and do not take into account the real financial pressures parents face. Они настаивают на том, чтобы налоговые вычеты возрастали пропорционально каждому новому ребёнку.
Representatives of the organizations also emphasized that families in which one of the spouses does not work should receive the same support as single parents. The Federation of Petroleum Workers proposed establishing a single income threshold of one hundred thousand euros for all families with three or more children, increasing it with each child. The PASIDI civil servants' union, in turn, spoke out against tying benefits to income and advocated a universal child benefit in the amount of two hundred to two hundred and fifty euros, regardless of the family's financial situation.
Trade unions and public organizations warn that the introduction of complex criteria will only increase the bureaucratic burden on the tax service and create confusion among citizens. They call on the government to more clearly separate social and tax policies so that support for families is not only effective, but also fair - especially at a time when the country is trying to avoid further demographic decline.
Source: cyprusmail
