Filenews 6 December 2025 - by Eleftheria Paizanou
An alliance of parties in Parliament to increase the tax-free allowance and income ceilings, to diversify tax scales, to increase tax deductions and to abolish stamp duty. A few days before the presence of Finance Minister Makis Keravnos at the crucial session of the Parliamentary Committee on Finance on Monday, during which any changes are expected to be "locked", the parties, for the first time, clearly opened their cards. The common denominator of all is the further relief of the low and middle income strata.
The parties believe that the good course of the economy and public finances allow there to be differentiations, without there being a fiscal deviation. The Minister of Finance appears willing to accept some of the party proposals. It has already taken the first step and accepted the increase of the annual income ceiling from €80 thousand. to €90 thousand, in order to expand the number of beneficiaries of tax deductions.
What concerns the government's economic staff is that the parties do not open the "gap" of the tax-free allowance too much, as every €1,000 increase in the tax-free allowance, from the €20,500 proposed, entails a loss of €30 million in public revenues. The technocrats of the ministry have started doing exercises on paper and preparing various scenarios for the economic impact that the party proposals will have.
According to information from "F", the majority of the parties are oriented towards increasing the tax-free allowance between €21,500 and €22,000. At the same time, they are working on a common formula for the rest, which will affect all categories of taxpayers.
It is recalled that with the government proposal, the fiscal cost from the tax exemptions will amount to €151 million per year. Due to the changes and the tight time frames, there is a possibility that the bills will be put to the Plenary on December 22.
The DISY amendments
DISY will submit amendments that move in six directions, which are as follows:
• Increase of tax-free income.
• Differentiation of the scales in favour of those who fall under the 20% and 25%.
• Increase the discount for children and students.
• Increase of income criteria depending on the number of children.
• Abolition of stamp duty.
• Reduction of capital gains tax.
According to the president of DISY, Annita Demetriou, the party will vote against amendments that go beyond the fiscal margin, while it will not vote for any new taxation. It also calls for an increase in child benefit and student sponsorship, as well as support for pensioners, people with disabilities and other vulnerable groups of the population, with an emphasis on low incomes.
AKEL: He also wants his proposals to be approved
AKEL, in addition to the amendments, will also demand the approval of the law proposals it submitted on Thursday, which will impose a property tax, a graduated tax on companies, as well as 5% VAT on electricity and renovations, while zero taxation is proposed on basic necessities.
AKEL MP, Andreas Kafkalias, stated that the government proposal is not fair. As he said, AKEL's amendments include an increase in tax-free income to €22,500, changes in tax rates in favour of low incomes, indexation of scales every three years and regulations for the protection of provident funds, with their exemption from income tax.
DIKO: There is fiscal space
The deputy president of DIKO and chairwoman of the Finance Committee, Christiana Erotokritou, stated that, according to the party's comprehensive economic analysis, there is a clear and safe fiscal space for substantial tax reliefs. As he said, the tax-free income of €20,500 can be increased, while the amount of tax exemptions for children and students, which is €1,000, as well as for mortgage interest or rent payment, which is €1,500, can also be increased.
The amendments of the other parties
ELAM is preparing amendments with which the discounts for children and students will be staggered; That is, depending on the number of children, the amount of the tax deduction will increase.
EDEK is working on a series of amendments in relation to the tax-free allowance and discounts. MP Alekos Tryfonidis stated that they include the increase of the tax-free allowance to €21.500, the provision of credit to those below the tax-free to deal with high prices, the indexation of the scales to strengthen the middle class, the increase in discounts for children and students, the strengthening of the discount for interest on mortgages on primary residences and the provision of a discount for single-parent families through the maintenance allowance.
Finally, the amendments of the Ecologists are related to the increase of the amounts of tax deductions for interest on mortgages, children and students, as well as to the revision of tax rates by adding new scales.
