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DEOK's positions on tax reform

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The tax system must be fair and balanced in order to tax wealth and high incomes and to strengthen public resources in social welfare and economic development, says in a statement, DEOK. b >

It notes that in response to a letter from the Director General of the Ministry of Finance, it sent on April 21 its positions regarding the forthcoming tax reform. & Nbsp;

In its letter, DEOK states that the issue of equitable and fair taxation is intertwined with the role that the state must play in the distribution and redistribution of the generated wealth. & nbsp;

DEOK, taking into account that the last tax reform took place two decades ago but also the modern challenges arising from the technological environmental and economic changes, considers that the modernization and the reform of the tax system is necessary. & Nbsp;

He states that the Cypriot government has committed itself in the context of the green transition with specific European goals that largely prescribe the formation of a new development model.

wage labor resulting in widening social inequalities and increasing corporate profits.

He points out that tax reform should take into account both the green and the social dimension. “Also, the shift of the tax system from direct to indirect taxes has disproportionately burdened the low income groups”, he adds. & Nbsp;

Particularly unfair, according to DEOK, is the taxation with VAT on food, fuel and other basic goods, as a result of which thousands of poor families find it difficult to meet their financial obligations.

He points out that a serious problem for the tax system is and widespread tax evasion, which he says should be tackled immediately and decisively through concrete measures. & nbsp;

It is added that the claim of DEOK is the largest possible shift of tax burdens from the middle and low incomes and the redistribution of national wealth by ensuring a decent standard of living for all citizens.

The Federation notes that it has submitted proposals such as: immediate indexation adjustment of all tax scales, indexation adjustment of tax scales every five years, increase of tax-free income through revision of tax scales and reduction of VAT on food, fuel and other

>.Also, reinstatement of the tax deduction of children and imposition of increased taxation on companies that do not comply with environmental standards and granting tax incentives to companies that develop and apply innovative technologies for the green transition.

DEC also proposes implement a tax incentive system for companies that create new jobs in the fields of green economy and renewable energy sources, provide tax incentives to companies that invest in the fields of research and innovation and implement tax incentives for hiring people with disabilities.

In order to combat tax evasion, DEOK supports and claims the introduction in the tax system of presumptions of wealth and luxurious living, granting tax incentives to citizens to require the issuance of receipts from suppliers of goods and services and publication of names and imposition of strict penalties. people who proven to conceal large revenues from the tax authorities.

Source: www.philenews.com

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