Cyprus has made new tax changes. These changes will help people, especially families, pay less tax. The government says this will give people more money to spend. It will also make the tax system easier to understand. Officials think this is important for a fairer and better economy.
The new rules raise the amount of money people can earn before paying tax. This amount is now €22,000 for everyone. The tax rates are also changing. People earning between €22,001 and €32,000 will pay 20% tax. Those earning more will pay higher rates. For example, incomes over €72,000 will have a 35% tax rate. This system helps ordinary people a lot.
Many families are already seeing lower tax bills. For example, a family with two children now pays €1,000 in tax. Before, they paid €4,400. This is a saving of €3,400. A single parent with two children is saving €2,350. Even larger families are saving thousands of euros. These savings mean more money for homes and families.
The new tax system also aims to help businesses. It should be simpler and clearer for them. This might encourage more investment. The Ministry of Finance said these are good changes. They are helping people's finances. A website is available to help people check their savings. These changes are for the modern world. They should help society and the economy grow.