The cooperation of everyone is needed to implement tax reform as of January 1, President Nikos Christodoulides said on Sunday, adding that any delay would be to the detriment of improving people’s income and market predictability.

Writing in Kathimerini, he said the tax reform ensures a fairer distribution of income and strengthens social cohesion.

“It is a new and fairer tax system, which strengthens the real economy and the competitiveness of Cypriot businesses and will attract productive and quality foreign investments, which will create well-paid jobs,” he said.

The tax reform will keep Cyprus in third place in the International Tax Competitiveness Index.

“The tax transformation is based on our ideological-political approach, that of social liberalism, which represents a state that encourages entrepreneurship and gives incentives and space to private initiative, but also that intervenes where and when necessary for a fair distribution of national income, protection of the market, as well as targeted support for those who really need it,” Christodoulides said.

The reform, he added, was based on real tax data and econometric models, which accurately measured the social and fiscal impact of each option, in addition to extensive consultation with all stakeholders and organised groups.

“The tax reform we have prepared actively supports the family and the middle class, which is the foundation of every society and the backbone of our economy,” he said.

The proposals aim to correct distortions in the tax system that mainly served foreign companies with international activity, and will “substantially reduce the tax burden for Cypriot-owned companies”.

The reform will see corporate tax increase to 15 per cent, while it is also linked to the knowledge economy and the green transition. It also includes simplification of procedures and administrative rules, which enhance transparency.

The government has submitted the proposal to the House of Representatives with the aim of implementing it from January 1.

“We must all work together to pass this important reform,” he concluded