The Government is working methodically and, in a targeted way to maintain stability and further strengthen the resilience of the economy, President Nikos Christodoulides, said on Wednesday, in his address to the 64th Annual General Meeting of the Cyprus Institute of Certified Public Accountants (ICPAC). Cyprus, he noted, must and can remain an island of credibility in an environment of increasing international complexity.
President Christodoulides’ address was delivered by Deputy Minister to the President, Irene Piki.
In relation to the tax reform, he said they are already in the final phase of preparing the bills, with the aim of tabling them to Parliament soon, so that the new framework can be implemented from January 1, 2026.
In his address, the President of the Republic said the ICPAC was an “important partner of the State in one of the most critical areas of public life: the economy” and “partners” in every national effort for progress and stability.
Referring to the presence of the President of the International Federation of Accountants, Jean Bouquot, at the event, he said that this was a recognition of ICPAC’s high professional level, and the wider international appreciation enjoyed by the Cypriot accounting and auditing sector.
He added that the Government, he added, recognises and “deeply” appreciates ICPAC’s role as an institutional interlocutor “that actively participates, with responsibility and documentation, in public debate and policy formulation”. Especially in the field of reforms, its contribution has always been significant and constructive, he adds.
Noting that the current state of affairs was “extremely demanding and full of uncertainties”, he said that the Eastern Mediterranean is regaining strategic importance for security, regional cooperation and the promotion of stability. “Cyprus is facing a dual challenge”, he said, on the one hand, to remain a stable and reliable partner in the region and on the other, to ensure the necessary conditions for economic resilience, social cohesion and institutional continuity, he noted.
“The Government, adequately prepared for the challenges ahead, is working methodically and in a targeted way to maintain stability and further strengthen the resilience of our economy. Cyprus must and can remain an island of credibility in an environment of increasing international complexity,” he noted.
President Christodoulides said that in this volatile international environment, the Cypriot economy continues to record “remarkable performance”, with a 3.4% growth rate in 2024, a return to the investment grade (“A”) by international rating agencies, “historically low” unemployment levels and a declining public debt.
“We understand external factors can easily upset balances. That is why we are working consistently to shield our economy institutionally, fiscally and structurally,” he pointed out, adding that significant reforms were at the heart of the Government’s efforts. The tax reform promoted by the Government is “the first comprehensive review of the system in two decades,” he added. “Our ambition is a fair, simple, efficient and competitive tax system, which will respond to the needs of the new era and will be a lever for development and social policy,” he noted.
According to the President, the tax reform was part of a broader set of institutional reforms, which aim to strengthen not only the economic resilience, but also the credibility, transparency and accountability of the state.
In this context, he said, the Government is proceeding with interventions that concern the very core of supervision and compliance. He referred to the establishment of the Single Supervisory Authority for administrative services, with the aim of unifying and strengthening the regulatory framework, and to the operation of the National Sanctions Unit at the Ministry of Finance.
“These initiatives constitute essential steps that aim to protect Cyprus as a state governed by the rule of law, to strengthen the institutional environment and to upgrade the country’s image as a serious and safe business destination,” he said, among other things.
In connection with these institutional interventions, he said, “we have also moved forward with the first organised international campaign with the aim of establishing Cyprus as a modern, reliable and competitive business hub”.
President Christodoulides also referred to “another challenge”, the attraction and retention of talent and to the Government’s “Minds in Cyprus” initiative.
In closing, he said that the Government is proceeding with consistency and determination, based on a coherent plan that responds to present challenges and invests in the possibilities of tomorrow. In this effort, cooperation with institutions, such as ICPAC, takes on particular importance, he said, thanking the Association for its contribution.
CNA/KST/EAN/EPH/2025
ENDS, CYPRUS NEWS AGENCY
