Filenews 24 June 2025 - by Eleftheria Paizanou
The war in the Middle East and the risk of closing the Strait of Hormuz, from which about 20-25% of oil is transported to Asia and elsewhere, may bring a reversal in the plans for the implementation of green taxation in Cyprus.
If Tehran blocks the passage of tankers carrying oil and gas to Europe and mainly to Asian markets, oil prices will skyrocket, which will have a direct impact on consumers and Cyprus. The Republic, in the context of the commitments it made to the Commission to implement its obligations for the disbursement of the Recovery Fund grants, planned to proceed with the imposition of the green tax around the end of June – beginning of July, through which the price of fuel will increase by 3 cents per liter, i.e. 50% of the increase initially demanded by the European Commission.
The new facts in the Middle East are of great concern to the Cypriot authorities.
In addition to the upcoming increases expected in fuel, another increase, of 3 cents per liter at the moment, would burden consumers more.
Overthrow
As "F" is informed, the government is considering addressing Brussels again, asking for the green tax to be moved to a later date.
The bills for the imposition of the green tax and the introduction of compensatory measures have been prepared by the technocrats of the Ministry of Finance, who are awaiting the final instructions from the Presidential Office. A competent source told us that in the coming days the necessary steps will be made to the EU and depending on the response that Nicosia will receive, decisions will be made.
Alliances with other states
As "F" is informed, the President of the Republic, Nikos Christodoulides, seeks to make alliances with other countries in order to request an extension in the implementation of the financial burdens for the green transition. That is, instead of being implemented in 2027, it should be postponed for some time. President Christodoulides already raised this issue during the contacts he had with his counterparts abroad. It is not excluded that at the next EU Summit the issue will be discussed and all member states will be asked to get an extension in view of the events in the Middle East.
It is possible that member states will send a letter to European Commission President Ursula von der Leyen, asking her to put the burden on the green transition on ice.
Normally the rest
Regarding the landfill tax (€10 per tonne), a competent source said that it will be applied normally in Cyprus. Each household is estimated to be burdened with €22 per year, i.e., the burden will be around €1.70 per month. In addition, the green water tax will normally be applied, which will be €0.01/cubic meter.
