The finance minister said on Thursday he is “confident” that the government and parliament will work together to push through the tax reform so that the new system takes effect at the turn of 2026.

Makis Keravnos made the comments to media a day before the House finance committee was set to begin reviewing the six government bills comprising the tax overhaul.

“There is consensus and good cooperation with the chairman and the members of the House finance committee,” Keravnos said.

He was confident that “we will have good cooperation, so that we can get the best possible result.”

A reformed tax system, he added, would “breathe new life into the economy and our society”.

It would benefit individuals, families with children, and businesses.

The government hopes to have the entire tax reform package passed before the end of this year, so that the new system kicks in at the start of 2026.

In similar remarks, government spokesman Konstantinos Letymbiotis sought to stress the importance of the proposed tax reform.

“The phrase ‘a Cyprus that changes’ is not just a slogan, it is a tangible commitment, and the tax reform represents one of the most clear-cut proofs of this change,” he asserted.

The tax overhaul is intended to make the system fairer, more effective and more viable.

It would ease the tax burden on a broad segment of the public, support the middle class, boost household income, promote employment, support newlyweds in their quest to build their first home, and encourage the transition to green technology and digital technology.

“The tax reform is no mere accounting exercise,” said Letymbiotis.

The spokesman claimed the Cyprus economy is performing very well – particularly relating to low unemployment – meaning this is a good time to enact the changes.

The government says its sweeping tax overhaul will broaden the tax base, toughen enforcement and ease the burden on households and businesses.