The Government remains firmly committed to the philosophy that the tax system, while serving as a tool for securing state revenues, must, above all, be a stable and transparent system that continues to attract foreign investments, enhance entrepreneurship, and possess mechanisms for a fairer and more equitable distribution of benefits to all taxpaying citizens, the Ministry of Finance has stated.
It also noted, in an official statement, that the "extensive consultation" on tax reform is ongoing and that the Minister of Finance, Makis Keravnos, will hold a joint meeting in the coming period with the leaders or representatives of all parliamentary parties.
The statement was responding to comments and concerns from parties and organisations concerning the form and character of the tax transformation being promoted by the government.
The Ministry of Finance emphasised that "the goal of the tax reform, whose necessity for the future of the Cypriot economy is widely acknowledged, is to enhance the competitiveness of the economy, support Cypriot entrepreneurship, continue the upward trajectory of foreign investments, alleviate the tax burden on the middle class, and combat tax evasion and the shadow economy".
According to the Ministry of Finance, the fight against tax evasion "is not only considered necessary for supporting and strengthening the growth of the Cypriot economy but also serves as a crucial method for reinforcing transparency, taxpayer trust, and equality before the law".
It is also described as "the only way to enhance the positive international image of the economy, which will effectively contribute to Cyprus’s reputation as a reliable international business hub."
This path, the statement noted, "runs parallel to this Government’s determination to clear Cyprus’s name from the repercussions of previous policies."
Today, it added, based on a government declaration, the National Sanctions Implementation Unit has been established and is operational.
The Government, it stated, true to its commitments, is determined to move forward with the adoption of a fair tax system that leaves no room for the development of tax evasion and avoidance phenomena, which harm the economy and the citizens."
"The goal is for the new tax system to fully meet the needs of the economy and society in terms of stability, equality before the law, and transparency, so that Cyprus remains an attractive destination for investments while supporting Cypriot businesses to enhance their resilience and competitiveness", it added.
(Source: CNA)
