Cypriot MEP Michalis Hadjipantelas’ report on simplifying the EU tax was debated in the European Parliament plenary on Wednesday, aiming to make the bloc’s tax system more competitive without easing the fight against tax avoidance, evasion and fraud.

The report, according to Politis, includes proposals to reduce administrative barriers, simplify tax compliance, and cut compliance costs, which for small and medium-sized enterprises (SMEs) are estimated to reach about 30 per cent of taxes paid.

At the same time, the measures are expected to help governments improve tax collection and curb avoidance and evasion.

It also integrates key proposals from organised bodies in Cyprus, reinforcing the country’s presence and positions at the European level.

Hadjipantelas said in his address to the plenary that the EU “needs a simple tax framework, modern and functional, that will encourage entrepreneurship and small and medium-sized enterprises, attract investment and support social cohesion.”

He noted that in a period of economic challenges and global competition, “a simpler tax environment is vital.”

The report, he added, “creates the conditions for a simpler, fairer and more competitive Europe,” expressing satisfaction over the broad political consensus achieved.

“Most of us in this room fully understand the need for a simpler tax environment that will enhance competitiveness and make it easier for citizens and businesses, especially small and medium-sized ones,” he said, thanking all political groups “for their contribution and their constructive attitude.”

The report will contribute to the ongoing EU work on legislative simplification in the tax area, particularly a Commission proposal expected in early 2026.

European Commissioner for Climate, Net Zero Emissions and Clean Growth Wopke Hoekstra described Hadjipantelas’ work as “excellent”.