Both Finance Minister Makis Keravnos and the organisation representing employers and industrialists expressed confidence on Tuesday that the roadmap for the planned tax reform is on schedule.

The planned tax overhaul aims at a fairer distribution of the tax burden, boosting business and encouraging entrepreneurship while attracting foreign investment, Keravnos said after meeting the leadership of the Employers and Industrialists Federation (OEV).

Asked whether the timetables would be met by January 1, 2026, the minister said he was “optimistic”.

The government’s draft bills are currently being vetted by the attorney-general’s office, while the consultation process with stakeholders continues.

“As far as the government is concerned, we are ready,” Keravnos told reporters.

He described the talks with OEV as “very productive”, adding that they see eye to eye on what objective the tax reform must serve.

“They have assured us that the content of the tax reform is moving in the right direction.”

The finance ministry and OEV also agree that the reform should be presented to the cabinet, and later to parliament, as a comprehensive proposal.

Likewise, head of OEV Giorgos Pantelides underlined the need for the tax reform to be implemented on schedule.

“The new tax framework must kick in on January 1, 2026, for the good of the economy,” he said.

Slicing up the reform like “salami” would only create confusion and fall foul of the objective.

A day earlier, the finance minister had met with political party leaders, again voicing optimism.

But on Tuesday, opposition Akel made public their package of 20 proposals for the tax reform drive.

The party called the government blueprint “unfair and unequal”.

It said the government plan “worsens income inequalities, foists more taxes on lower-income classes, tosses some breadcrumbs to the middle class, while gifting millions of euro to the golden boys earning super-profits and to accumulated wealth”.

Akel proposed raising the taxable income threshold, plus permanent reductions to the VAT on electricity, fuel and essential consumer items. They also want to scrap plans to impose so-called ‘green taxes’.

In close collaboration with the Economic Research Centre at the University of Cyprus, the government has put forward a sweeping tax overhaul that it says will broaden the tax base, toughen enforcement and ease the burden on households and businesses.

Among other things, it would raise the taxable income threshold from €19,500 currently to €20,500. Another proposal would see the corporate tax rate go from 12.5 per cent to 15 per cent.