Dialogos

AKEL Criticizes New Tax Framework as Insufficient

Published December 29, 2025, 10:01
AKEL Criticizes New Tax Framework as Insufficient

AKEL is criticizing the new tax framework, considering it below expectations and potential for substantial reform. The party accuses the government of lacking comprehensive consultation and failing to adopt proposals for a fairer distribution of tax burdens, with increased contributions from high incomes and wealth. AKEL points out that the government rejected its proposals to strengthen tax justice and the state's tax collection capacity, depriving the public of revenues that could support low- and middle-income earners and small and medium-sized businesses. At the same time, it states that it achieved some improvements, such as increases in tax deductions for children and housing expenses, as well as the exemption of Provident Funds. As an example, AKEL cites the reduction of dividend tax from 17% to 5%, which benefits business owners, while an employee with a tax-free income will earn only €500 per year. The party states its determination to promote new proposals to reduce indirect taxes. Overall, AKEL believes that the tax reform clearly demonstrates who stands on the side of society and who stands on the side of the few and powerful.