Finance Minister Makis Keravnos on Monday night said he was optimistic over the government’s plans to implement sweeping tax reforms, following a meeting with political party leaders.

“We can all move together and implement the tax reform,” he said after the two-and-a-half-hour meeting, adding that there should be “a convergence of opinions from all social partners and from the political parties of this place”.

He added that he had “heard very good opinions, positive views, and approaches”, which he said “confirm on the one hand some of the government’s intentions regarding the content of the tax reform, and at the same time enrich our thoughts”.

As such, he said, he is both ready and willing to “continue this dialogue”, though he did stress that he is “taking very seriously” his demand for “the right timetables” and a “rapid pace”, so as to remain on target for the tax reform to be implemented on January 1 next year.

“This reform will lead to relief for taxpayers, workers, the working classes, small and medium-sized businesses, and will strengthen the competitiveness and resilience of the Cypriot economy, which are particularly important elements in this global context,” he said.

Asked whether the target of January 1 is realistic, he said that “this is the effort we are making and it is also everyone’s will to meet precisely this milestone, which is important”.

He was then asked what in the government’s plans has changed since the initial announcement of the planned reforms in February, and made reference to the new powers which were to be allocated to the tax commissioner.

He said that at Monday evening’s meeting and in other previous meetings, stakeholders had raised concerns that the tax commissioner “would be able to intervene in an arbitrary manner”.

“It has been clarified that this was never the intention of the government and there is no way that such provisions will be included,” he said, adding that the tax commissioner’s powers will be “clear” and “recorded with full transparency”.

The government has aimed for the tax reforms to be implemented at the beginning of next year, with President Nikos Christodoulides having set out the plans in February.

Plans include raising the tax-free income threshold to €20,500 per year, an increase of €1,000 from its current level, at which it has sat since Cyprus introduced the euro in 2008.

Additionally, 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”.

The most notable of his planned reforms is the increase in individuals’ tax-free incomes, while he also promised a “series of significant tax deductions which take into account the needs of households and the composition of the family”.

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.

Christodoulides also promised that young people will be “essentially supported” with tax relief incentives for parents, which he said will “further encourage the employment of women and respond to structural, long-term distortions”.

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.

Since then, those plans have been added to by new measures aimed at combating tax evasion, including plans to allow authorities to seal off businesses which repeatedly fail to issue receipts or invoices, criminalising the non-payment of income tax, and raising the fines levied at tax offenders.