Committee prepares amendments
The House Finance Committee continued its article-by-article review of six government tax reform bills today. Members agreed to reconvene on Monday so parties can finalise and submit amendments.
Committee chair Christiana Erotokritou (DISY) outlined joint amendments from DISY, DIKO, EDEK, and DIPA. These four parties met the Finance Minister and reached convergence.
Joint party proposals
The amendments include:
- Raising the tax-free threshold to €22,000
- New income tax scales: 20% (€22,001–€32,000), 25% (€32,001–€42,000), 30% (€42,001–€72,000), 35% (above €72,001)
- Enhanced child tax relief for families earning up to €100,000–€200,000 depending on number of children
- Increasing mortgage interest deduction from €1,500 to €2,000
- Raising rent deduction from €1,500 to €2,000
- Abolishing stamp duty
- Higher capital gains exemptions (general sale €30,000, agricultural land €50,000, primary residence €150,000)
Erotokritou noted additional administrative amendments may follow.
AKEL and Greens positions
AKEL MP Andreas Kafkalias announced plans for a €22,500 tax-free threshold, progressive rates with an extra bracket above €100,000, triennial indexation, and special relief for families with disabled children regardless of age.
The Ecologists, led by Stavros Papadouris, support €22,000 tax-free, keeping 30% rate up to €70,000, abolishing stamp duty, and maintaining existing VAT proposals on energy upgrades and photovoltaics.
DIPA welcomes progress
DIPA parliamentary spokesman Alekos Tryfonides welcomed adoption of his party’s proposals worth around €110 million. He said they support low earners, pensioners, families, single parents, students, and young people facing high rents or seeking first homes.
Tryfonides stressed DIPA’s constructive role in achieving a fairer tax burden distribution while staying within fiscal limits.
Monday’s session will focus on presenting and debating all amendments before voting.
Featured photo: Cyprus Mail
Also read: Parties reach broad agreement on Cyprus tax reform package
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