Finance Minister Makis Keravnos said on Friday that tax reform is a crucial step towards strengthening the economy and achieving a fairer and more efficient tax system.

Addressing an open discussion in Limassol on the upcoming tax reform and the challenges, the Minister noted that a meeting will take place in the beginning of the new year where they will discuss the progress and the outcome of each phase of the project so far.

Keravnos pointed out that the last reform took place 22 years ago, adding that the government wants to maintain the good course of the economy, to continue the implementation of fiscal discipline and a balanced development policy with structural changes. He noted that the reform will bring significant benefits, enhancing the sustainability and competitiveness of the country, at international level.

The Finance Minister spoke of the need to have a more modern system that will take into account international developments and the new economic environment.

He recalled that the study for the new reform was assigned to the Economic Research Center of the University of Cyprus and that a broad public consultation has been completed with all stakeholders and more than 40 bilateral meetings have been held with private sector entities, associations, federations, employers' unions, organisations, institutions, professional bodies and political parties.

Keravnos also noted that in reforming the system, the government took into account the commitments and obligations of the Republic towards the Recovery and Resilience Plan, as well as obligations at the international and European level.