The employers and industrialists’ union (OEV) and the Cyprus chamber of commerce and industry (Keve) have welcomed the tax reforms proposed by the government on Wednesday, saying they were a step in the right direction.

The proposal was made by the Economics Research Centre of the University of Cyprus, which had undertaken to prepare the tax reforms.

Keve said the ultimate aim should be the growth of the economy, modernised taxes and foreign investments.

The chamber said that, when these needs are met, Cyprus will have a flexible, modern and growth-oriented taxation framework, which will contribute to progress and development over the next years.

OEV said the plan was a step in the right direction, which took into consideration Cyprus’ challenges, both at home and abroad.

It added that timeframes should be observed, with the new framework being implemented on January 1, 2026.

OEV said it was necessary to observe public revenue and reduce unproductive spending within the new framework.

Although it expressed reservations over the increase of the corporate tax rate, OEV said in general the plan maintained the competitive advantages of the Cypriot taxation framework.
Both OEV and Keve said they would examine the plan and return with their views.