Greek government plans interventions in the income tax scale.

Macro/Political:

• The government’s planned interventions in the income tax scale, starting in 2026, aim to provide permanent relief for middle-income earners. The objective is to narrow the gap between the rise in average income and the corresponding increase in tax liability, particularly after the plan to index tax brackets to inflation was abandoned due to its high fiscal cost. According to the press, a series of adjustments to personal income tax rates are under consideration, while an increase in the tax-free threshold for families with children is also being planned to support households.
  Source: Capital.gr

• The Cyprus government is seeking allies in parliament regarding the proposed tax reform, which will be presented in the coming days. Finance Minister Makis Keravnos has scheduled meetings with all party leaders to discuss the matter. The government is expected to explain to the parties the planned changes and the economic benefits they will bring for the state, citizens, and businesses. At the same time, the issue of the EUR 200mn gap in state revenues is also expected to be discussed, which the government has decided to address through the inclusion of measures against tax evasion.
  Source: PhileNews