Filenews 15 October 2025 - by Eleftheria Paizanou
Despite the disagreement of the Ministry of Finance, AKEL insists on the effort to tax the excess profits of companies producing and supplying electricity from renewable energy sources (RES).
On Friday, AKEL's relevant bill will be put before the parliamentary Finance Committee again, in an attempt to obtain the required majority and be brought to the Plenary Session of the Parliament.
The debate on taxing the super profits of RES began in 2022, without any result to date. This is the second proposal prepared by AKEL, which seeks to tax producers and suppliers of electricity from RES with an amount that will be calculated based on a specific methodology.
The draft law provides that the amount of taxation will be declared after a calculation made by the energy company itself in a form approved by the Tax Inspector and must be submitted by the energy company, with the simultaneous payment of the tax on March 31 of the year following the tax year.
In addition, it is provided that the energy company may, within six months from the submission of the tax calculation return, submit a revised return, duly justified.
Essentially, taxation will be proportional and will not have retroactive effect. It is noted that AKEL argues that the European Commission allows EU member states to introduce tax measures for the super profits recorded by companies in the RES sector.
Last May, when the issue was brought back to the Finance Committee, the Ministries of Finance and Energy had disagreed with the proposal. The proposal was also opposed by KEBE, OEB, ETEK, Association of RES Companies and Electricity Market Association.
Obstacles to detection
Finance Minister Makis Keravnos was asked again last Monday about the position of the government side, at the beginning of the discussion of the 2026 state budget.
Mr. Keravnos said that it is not an easy task to tax the super profits of this sector, as it is difficult to identify the super profits of RES. According to the Minister of Finance, "each photovoltaic in each field is a separate company", adding that a comprehensive study is being carried out on the issue, for which there will soon be results. "Any actions taken should be careful and not affect the goal of encouraging the further penetration of renewables in the country's energy balance," he added. Concluding, he stressed that it is not possible for the country to seek to increase the penetration of RES and on the other hand to put obstacles in the way of entrepreneurs in the sector.
