Fiscal Reform and Economic Dialogue at Cyprus Forum 2025

At Cyprus Forum 2025, fiscal policy experts and business leaders voiced strong reactions to the government’s proposed tax reform, calling for a more comprehensive and technologically updated approach to combating tax evasion. During a high-profile panel on economic governance, speakers emphasised that omitting VAT reform from the legislative agenda leaves the system exposed to inefficiency and lost public revenue. Michalis Grekas, VAT specialist at KPMG and Chair of the VAT Committee of the Institute of Certified Public Accountants of Cyprus (ICPAC), warned that VAT represents the largest source of fiscal revenue and the main area of tax leakage, urging the adoption of digital tools such as e-invoicing to enhance transparency.

Eftychios Eftychiou, Tax Policy Chair at PwC, criticised the reform’s limited scope and lack of consultation, arguing that genuine modernisation requires structural changes rather than piecemeal adjustments. Marios Tannousis, CEO of Invest Cyprus, highlighted that a stable and competitive tax regime remains vital for attracting foreign investment, while Philip Morris’s Regional Director, Grigoris Kamperis, cautioned against excessive taxation that could unintentionally promote illicit trade. Representing the Finance Ministry, Maria Heracleous reaffirmed the government’s commitment to implementing the new tax system by 2026, expressing confidence that political consensus would support a balanced and transparent fiscal framework.

Related Links:

• Politis (Front Page): Ongoing reactions to the government’s tax reform
• Politis (Economy Section): Cyprus Forum 2025 – Debate on tax reform and VAT policy