Finance Minister Makis Keravnos on Thursday called for the government’s tax reform plans to be complete by autumn.

He said he has received “positive reactions” to Wednesday’s announcement of the planned reforms and set out a road map for the plans’ implementation.

The public consultation on the matter, he said, will proceed for three weeks. He added that the “conversation is continuing”, and that a schedule is being prepared for future meetings on the matter.

“We are open, as we have been until now, to suggestions,” he added.

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He then said that after bills have been drafted, they will be published on the government’s e-consultation website for two weeks, before they will be submitted to parliament for a vote.

This process, he said, should be complete by early autumn.

Asked whether he was pleased with Wednesday’s presentation of the plans, he said an “excellent, scientific project” has been carried out, and that the forming of the plans came after more than 50 consultations with social partners, organisations, institutions, and other groups.

“This tax reform is the basis on which our economic development path will continue. The important thing is that it will reduce the tax burden for both households and businesses, opening up new paths for development. I am particularly pleased because from the first reactions, I can see that this effort is generally being accepted,” he said.

He said he hopes the reforms will “encourage entrepreneurship and provide incentives for individuals to join the labour market”, before also saying he hopes steps will be taken to tackle tax evasion.

“Let’s crack down tax evasion and tax avoidance and form the basis for upgrading the level of prosperity of the middle class,” he said.

Asked whether the government plans to introduce new safeguards against tax evasion, he said such safeguards “have already been put in place”, and that new safeguards would be introduced alongside the planned tax reforms.

President Nikos Christodoulides had announced a series of sweeping tax reform plans on Wednesday, which, in addition to the tax-free allowance increase, will also see that Cyprus’ 35 per cent top income tax rate will now only apply to those earning more than €80,000 per year, rising from its current level of €60,001.

Christodoulides promised his reforms will strengthen Cyprus’ middle class, which he described as the “foundation of every prosperous and democratic society”.

In addition to the €1,000 additional tax-free amount, parents will receive an extra €1,000 for every dependent they have, while Christodoulides’ plan also foresees €1,500 of tax-free income for every parent who is either buying their first house or renting, and €1,000 for a “green investment” on the part of every parent.

Single parents will receive double the ringfenced tax-free amount.

On the matter of businesses, he said the government plans to completely abolish deemed dividend distribution payments and “significantly reduce” the withholding tax on the distribution of actual dividends from 17 per cent to five per cent.

At the same time, he said corporation tax will increase from 12.5 per cent to 15 per cent, bringing Cyprus into line with European Union requirements.