Study on taxable income under way, President says

A study on the level of chargeable income tax is in progress, as part of the wider effort over a tax reform in Cyprus, President Christodoulides has said.

In statements on his arrival at the Employers and Industrialists Federation (OEB) headquarters for a meeting with the federation’s executive committee on 11 April, Christodoulides recalled that he met with the technocrats that undertook to prepare a study for the tax reform with a view to assessing the progress of the effort, noting that he will hold a new meeting.

Replying to questions, the President said that taxable income is a matter under consideration by the technocrats following his own guidelines.

Calling for the collaboration of all stakeholders, Christodoulides said one of the aims of the tax reform “is to combat shadow economy in our country which accounts approximately to 30%.”

On the taxable income he said raising the income tax level was a remark made by him in his election campaign “with a special emphasis on the middle class and how we could strengthen it.”

“We want to provide incentives, especially to families, their children, single parents and large families,” he said.

In Cyprus, income up to €19,500 is not taxable. The President has said that tax-free income could be raised up to €24,500.

He also said that with the introduction of green taxation by the end of the year, the government will also announce some elements of the tax reforms which will outline the government’s intention with regard with the whole tax reform package.

Furthermore, the President said that the government will consider how to provide incentives to Cypriot businesspeople and their activities abroad through specific incentives and actions, adding that this was the reason of his meeting with OEB.

“Soon the government will proceed with some announcements concerning specific sectors of the economy, taking into account the role of Cypriot businesses,” Christodoulides concluded.

(Source: CNA)