Filenews 19 November 2025 - by Eleftheria Paizanou
The kiosk owners demand an exemption of the Republic of Cyprus from the promoted European Directive, which calls for an increase in taxation on tobacco products.
During their presence yesterday in the parliamentary Committee on Trade, before which the problems they face were raised, they warned that when the prices of tobacco products increase, smuggling from the occupied territories will flourish and their turnover will be affected, resulting in a loss of revenue.
The Association of Permanent Service Stores (SYKADE) also forwarded a letter to both the Ministry of Finance and the Parliament, asking for their intervention to exempt the Republic from this Directive.
In the coming days, the members of the Trade Committee are expected to forward a letter to the Ministry of Finance, requesting information on the actions taken by the Government in relation to the EU directive. Representatives of the executive will soon be invited to the Commission.
The president of SYKADE, Andreas Theodoulou, speaking before the Committee, stated that the increases in taxation for tobacco products will cause a distortion in the market and smuggling from the occupied territories will increase. As he claimed, 12.8% of cigarettes and 52.6% of tobacco in the free areas come from the occupied territories.
SYKADE also cites research, according to which there is a €50 million decrease in state revenues due to the increase in cigarette smuggling. The smuggling of cigarettes from the occupied territories will have a party, according to his expression. He also pointed out that if today a pack of cigarettes is sold at the price of €4.70, with the European directive it will rise to €7 per pack.
For his part, the president of the New Association of Kiosk Owners, Spyros Xynaris, said that licenses are arbitrarily given for tobacco products, creating a chaotic situation. As he said, throughout Europe, tobacco products are sold either through kiosks or through special tobacco stores, while in Cyprus the sale is done uncontrollably and without taking into account the real needs of the market.
A representative of the CCCI said that the kiosks contribute to 20% of the GDP of the economy. He called on customs to tighten penalties for cigarette smuggling from the occupied territories.
Photovoltaics and card charges
In addition to the specific problem, those affected are asking for the intervention of the Parliament so that these businesses have easy access to photovoltaics, as their applications remain stagnant, as they said.
They also call on the Central Bank to change the charges imposed on them for payments they accept with credit cards. According to data cited, due to the disorder that, as it was said, exists in the retail market, out of the 1450 kiosks that operated in 2016, 850 are currently operating.
The biggest problem, as they mentioned, is the legislation on the categorization of stores and opening hours.
