Filenews 18 April 2025
The Minister of Finance, Makis Keravnos, reiterated his disagreement with the imposition of a tax on motor fuels in the context of green taxes.
Speaking to CyBC's show "From Day to Day" and journalist Tasos Christodoulou, Mr. Keravnos said that the Ministry of Finance is in discussions with the EU regarding the imposition of green taxation, noting that all possibilities are open.
The Minister of Finance specifically expressed his disagreement with the imposition of a carbon tax on motor fuels, criticizing the fact that Cyprus cannot provide alternatives to its citizens, due to the absence of public transport.
In fact, as he revealed, during his discussions with Europeans and in his report that Cyprus does not have transport like other countries, he received their surprise because, as they told him, this was something they did not know.
However, as he stressed, all the revenues that will arise from the imposition of green taxation, will return back to society and the economy in the form of compensatory measures.
In conclusion, as Mr. Keravnos pointed out, the difficulty in postponing green taxes lies in the fact that the Republic of Cyprus must convince Europe of the state's intentions that are needed to deal with the climate crisis.
Asked whether the previous government did good or wrong to include green taxes in the prerequisites for the disbursement of instalments from the Recovery Plan, the Minister avoided taking a direct position, noting, however, that Cyprus must address the climate crisis.
It is recalled that green taxes were expected to be imposed from May, however, the Ministry of Finance requested and received an extension at least until the summer.
It should be noted that in relation to fuel, the additional tax promoted based on the current data in force with the decisions on green taxes, amounts to 6 cents per liter for 2025, 10 cents in 2026 and 18 cents in 2027.
