Filenews 6 March 2024 - by Adamos Adamou
The imposition of green taxation is entering the final stretch, since the relevant bills, which will raise fuel prices and accommodation in hotels and tourist accommodation, are already ready and were put to public consultation as of today.
The Ministry of Finance has just officially announced the launch of the public consultation, informing that the relevant bills have been uploaded to the government's e-consultation platform. At the same time inviting all interested parties to submit their views and suggestions by 19/3/2024.
These are two pieces of legislation that make up green taxation, with the first referring to the imposition of a carbon tax on energy products and the second to the imposition of the residence tax.
The latter "the Imposition of Residence Tax Law of 2023" provides for the imposition of a residence tax per daily use and the persons who will be charged. Among other things, it is clarified that the accommodation tax "means the fee of €2.50 per room or accommodation or accommodation area" but also that it will be imposed not only on hotel rooms but also on tourist accommodation as well as self-catering accommodation in the Republic. "By imposing this fee, this Law aims to internalise some of the negative externalities of tourism, waste management and waste generation," it said.
The second bill "Carbon Tax on Energy Products Law of 2023" concerns precisely the introduction of carbon taxation in the transport sector and polluting industries.
It introduces a carbon tax on motor fuels of five cents a litre from this year. This tax will gradually reach 25 cents a liter by 2023, plus VAT.
The fuel tax is scheduled to come into effect on April 1. As far as the residence tax is concerned, it will come into force with its passage by Parliament.
It is recalled that the relevant taxes were presented on 1/4/2024 to the Ministry of Finance by the Centre for Economic Research of the University of Cyprus.
