The government on Wednesday announced a universal increase in the tax-free income threshold to €20,500, up from the current €19,500, as part of a broader tax reform package that will also introduce additional tax deductions for households.
The measures were unveiled during a presentation of the government’s comprehensive tax reform strategy, with President Christodoulides emphasising that the middle class stands at the centre of these changes, which aim to reduce social inequalities across the country.
According to the President, the increase in the tax-free threshold will apply uniformly to all citizens.
The government is reportedly developing various criteria that will further differentiate the extent of tax relief available to families, households with children, vulnerable groups, and other demographic categories.
The announcement comes amid ongoing discussions about economic inequality in Cyprus. This morning authorities found two migrants dead of suspected carbon monoxide poisoning, inside a makeshift bedroom in Limassol with a charcoal grill besides an airbed, suggesting they died while trying to keep warm.
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