The House finance committee met behind closed doors on Wednesday as parties are under continued pressure to finalise the government’s tax reform package.

On Tuesday, finance ministry officials and representatives of Disy, Diko and Dipa announced a broad agreement to raise the tax-free income threshold from €20,500 to €22,000, and expand family deductions.

The bills were returned to the committee after the three parties said they would table joint amendments, opening the way for a majority to push the reform through the plenum on December 22.

Finance minister Makis Keravnos said there was a “great convergence of opinions” and confirmed the government was prepared to accept a higher tax-free limit.

Keravanos stressed that the finance ministry had identified the points on which it could approve, including incentives linked to the number of children, provided they remained within the budget.

Akel, irked by its exclusion from negotiations, accused the government of undermining parliamentary procedure.

The party’s leader, Stefanos Stefanou, voiced irritation at being excluded from discussions that mirrored Akel’s own proposals.

The reforms, which are expected to take effect on 1 January 2026, shall carry an estimated annual fiscal cost of €110 million.