Thursday, June 2, 2022

CYPRUS - EXEMPTION FROM EU ENERGY TAXATION DIRECTIVE

 Filenews 2 June 2022



Cyprus will be able to apply for an exemption from a specific clause of the directive and apply a lower tax rate as it is an island and does not have a developed public transport network of low pollutants.

As part of the EU's target of a 55% reduction in gas emissions by 2030, the European Parliament's Energy Committee voted today to revise the European Energy Tax Directive, which will enter into force in 2023.

The revised directive, as proposed by the Commission, introduces higher levels of taxation on polluting fuels, bringing about significant increases, which consumers will have to pay for. According to the tax rates proposed by the Commission for motor fuels, there will be an increase of about 40 cents per litre in Cyprus. This proposal is particularly problematic, since, due to the lack of Public Transport and Green Transport in Cyprus, people who are dependent on the petrol and diesel they need for their car will be faced with an unbearable cost, which they will not be able to avoid, since there are no alternative means of transport.

On the initiative of the MEPs of AKEL, N. Kizilyurek and G. Georgiou, who is shadow rapporteur of the report on behalf of the left-wing group, the MEP, L. Christoforou, who participates in the Finance Committee, and the MEP, D. Papadakis, who is a member of the Environment Committee of the European Parliament, an amendment was tabled, which ensures that Cyprus will be able to request an exemption from this clause of the directive and apply a lower one. tax rate (up to 12 times), as it is an island and does not have a developed public transport network of public transport, low pollutants.

MEPs N. Kiziljourek, G. Georgiou, L. Christoforou and D. Papadakis, after intense work, succeeded in securing the support of their political groups, with the result that this amendment was voted for, today, and incorporated into the text of the European Parliament's Energy Committee. However, it will also have to be ratified by the Committee on the Environment, which is the main committee responsible for the report. Once the plenary has initiated the position of the European Parliament, negotiations will begin with the Commission and the European Council (trilogue), so that we can reach the final text.

It is noted that in the report of the Energy Committee of the European Parliament, other important amendments are proposed to the Commission's proposal, in order to combat energy poverty and ensure equal access to energy, within the framework of social policy