President Nikos Christodoulides on Wednesday called for an “immediate” response from parliament to pass his tax reform plans into law, to allow them to be implemented by the beginning of next year.

“I hope that parliament will respond immediately and that the tax reform in its entirety will be implemented from January 1 … Now is the time for decisions. Now is the time for parliament to vote,” he said ahead of the morning’s cabinet meeting.

Cabinet is set to approve six bills on the planned tax reform, which will then be submitted to parliament.

“Through our proposals, I am happy, because we are achieving our first goal, which was the fairer distribution of the tax burden. We are essentially strengthening the middle class, which is the backbone of our economy and our society. We are strengthening families with provisions for tax relief based on family composition and taking into account that we must face the demographic challenge,” he said.

He added that his planned tax reforms will also “boost female employment”, adding that this is the first time that Cypriot businesses are being strengthened to such an extent.

“Our responsible fiscal policy, far from populism and cheap public statements which, unfortunately, in the past, led the country to economic disaster, allows us to move forward with this bold tax reform … through which Cypriot citizens, Cypriot businesses, and society at large will benefit,” he said.

Christodoulides had set out the plans in February, including raising the tax-free income threshold to €20,500 per year, an increase of €1,000 from its current level, at which it has sat since Cyprus introduced the euro in 2008.

Additionally, Cyprus’ 35 per cent top income tax rate would only apply to those earning more than €80,000 per year, rising from its current level of €60,001.

In addition to the €1,000 additional tax-free amount, parents will receive an extra €1,000 for every dependent, while Christodoulides’ plan also foresees €1,500 of tax-free income for every parent who is either buying their first house or renting, and €1,000 for a “green investment” on the part of every parent.

Single parents will receive double the ringfenced tax-free amount.

At the same time, he said corporation tax will increase from 12.5 per cent to 15 per cent, bringing Cyprus in line with European Union requirements.

Since then, those plans have been added to by new measures aimed at combating tax evasion, including plans to allow authorities to seal off businesses which repeatedly fail to issue receipts or invoices, criminalising the non-payment of income tax, and raising the fines levied at tax offenders.