Financial Committee Chairperson calls for innovative taxation in view of challenges

Christiana Erotokritou, Chairperson of the Parliamentary Committee for Finance and Budgetary Affairs called for sustainable and innovative taxation policies, taking into account challenges, such as the ageing population, the green transition, climate changes, the digital transformation as well the volatile geopolitical environment.

According to a press release issued by the House of Representatives, Erotokritou represented the Cypriot parliament in the EU Tax Symposium co-hosted by the European Commission and the European Parliament, which wrapped up in Brussels on 25 October.

Speaking on a discussion on future taxation and the need for structural changes, Erotokritou highlighted the need for clear targets and the improvement of the current taxation mix, increasing tax revenue, while taking into account challenges such as the ageing population, demographic pressures, the green transition, digital transformation and geopolitical volatility.

Achieving these targets requires innovative and sustainable taxation policies and the right balance between tax burden and incentives, she said.

Inter alia, Erotokritou proposed exploring taxation incentives and tax relief for environment-friendly policies and practices such as renewable energy, energy efficiency technologies and sustainable transport, which could stimulate growth and create jobs.

She also suggested introducing excise taxation thereby shifting the tax burden to consumption while offsetting the impact of an ageing population, the reduction of pensions to high earners while promoting incentives for private saving for pensions as well tax incentives to corporations that provide reskilling to their staff for digital transformation and the changing labour market.

Concluding Erotokritou, stressed the need for striking the right balance between tax revenues, growth and taxation justice placing emphasis on the fact the EU and its driving forces should remain competitive in a constantly changing world.

(Source: CNA)