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12° Nicosia,
13 June, 2025
 

Keravnos takes gratuity tax exemption proposal to cabinet, opposes one-size calculation

Finance minister backs tax break but pushes back on uniform gratuity formula.

Dorita Yiannakou

Dorita Yiannakou

Finance Minister Makis Keravnos on Wednesday signaled support for a proposal to exempt from taxation a 15% gratuity granted to officials, but said the measure still requires Cabinet approval.

The issue was discussed during a closed-door session of the House Finance Committee, which met earlier to review legislation related to multiple pensions.

According to information obtained by Kathimerini, Keravnos expressed a generally positive stance toward the tax exemption but clarified that a final decision would rest with the Cabinet.

However, sources say the minister does not support a proposal to apply a uniform method for calculating gratuities across all categories of officials. Committee members did not take up party-sponsored bills related to the gratuity calculation, as the minister reportedly opposed discussing them.

According to reports, Keravnos rejected MPs’ requests to standardize the calculation method, which would have established a single rate for determining the gratuity amount for all eligible recipients.

*This article was translated from its Greek original.

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Cyprus  |  tax break  |  gratuity tax  |  finance

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