The Cypriot government is proceeding with a comprehensive tax reform designed to create a more stable and transparent system that attracts foreign investment and enhances local entrepreneurship, the Ministry of Finance has confirmed.
As part of an ongoing “extensive consultation” on the matter, Finance Minister Makis Keravnos is scheduled to hold a joint meeting with leaders and representatives from all parliamentary parties in the near future to discuss the proposed transformation.
Core Objectives of the Reform
In a statement addressing comments from various parties and organizations, the Finance Ministry emphasized that the primary goal of the reform is to bolster the competitiveness of the Cypriot economy.
The key objectives cited include:
- Supporting Cypriot entrepreneurship and continuing to attract foreign investments.
- Alleviating the tax burden on the middle class.
- Ensuring a more equitable distribution of benefits to all taxpaying citizens.
- Combating tax evasion and the shadow economy.
The necessity of this reform for the future of the economy, the ministry noted, is “widely acknowledged.”
The Fight Against Tax Evasion
A central pillar of the government’s strategy is the fight against tax evasion. The ministry described this effort as not only necessary for economic growth but also as a “crucial method for reinforcing transparency, taxpayer trust, and equality before the law.”
This focus on transparency is also linked to a broader effort to improve the nation’s international standing. The statement described it as “the only way to enhance the positive international image of the economy,” which will contribute to Cyprus’s reputation as a reliable international business hub.
Bolstering Cyprus’s International Reputation
The ministry connected the tax reform to the government’s determination to “clear Cyprus’s name from the repercussions of previous policies.” In line with this, the statement noted that the National Sanctions Implementation Unit has now been established and is operational.
The government’s ultimate goal, the ministry concluded, is a fair tax system that “leaves no room for the development of tax evasion and avoidance phenomena,” ensuring that Cyprus remains an attractive destination for investment while supporting the resilience and competitiveness of local businesses.
Source: stockwatch.com.cy