On Monday afternoon, the Parliamentary Finance Committee continued the article-by-article discussion of the set of bills to implement the promoted tax reform.
Specifically, the Committee discussed the draft of the Tax Certification and Collection (Amendment) (No. 3) Law of 2025, with the representatives of the Association of Chartered Accountants of Cyprus (SELK) and the Cyprus Bar Association (PDA) raising objections to individual points of the bill and the President of the Finance Committee, Member of Parliament of DIKO, Christiana Erotokritou, to invite the two bodies to discuss their disagreements with the Tax Department in order to reach an agreement.
The article-by-article discussion of the bill in question will continue next Friday.
Damianou: AKEL will submit a complete package of recommendations
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In his statement after the end of the session of the Parliamentary Finance Committee, AKEL Member of Parliament, Aristos Damianou, expresses the party's disagreement regarding the promoted tax reform, which, as he states, is "characterized by distortions and a lack of balance".
According to an announcement by AKEL, "the reform, as presented by the Government, proportionally more favors high incomes, widening social inequalities instead of reducing them. Much of society, workers, pensioners do not benefit. On the contrary, indirect taxes and accuracy remain", it is pointed out.
At the same time, Mr. Damianou notes that "AKEL will submit a comprehensive package of proposals aimed at a truly fair social approach and balance".
Specifically, it states that AKEL recommends an increase in the tax-free amount and a modification of the tax scales with the aim of greater relief for the middle and low income strata, as well as an increase in the limit for granting discounts, especially in cases where there are more than three dependent children.
It also states that the party proposes the complete exemption of welfare funds from income tax, a permanent reduction of VAT on electricity from 19% to 5%, the imposition of a permanent zero VAT rate for basic necessities, the extension of tax relief to Small and Medium Enterprises, as well as the taxation of high-value real estate.
Finally, Aristos Damianou reminds that there are already submitted proposals for taxing the surplus profits of banks, taxing the surplus profits of RES companies, as well as abolishing the reduced VAT of 5% on the sale of houses to nationals of third countries.
