Filenews 18 February 2026 - by Angelos Nikolaou
With a view to protecting the environment and minimizing the financial burden for citizens, the Government is definitively proceeding with the implementation of the Municipal Waste Landfill Tax, due to the high percentage of waste that is led to final disposal and the need to comply with European targets.
Specifically, by 2035, the percentage of municipal waste that ends up in landfills must be limited to 10% of the total quantities produced.
The decision was taken today by the Council of Ministers, which adopted a relevant proposal by the Minister of Agriculture.
Despite the initial concerns, the final framework of the 2026 Regulations brings a pleasant surprise for consumers' wallets, as the estimated burden per household on the annual garbage tax without the Pay as You Throw (PDO) reaches €10.60 by 2027, while with the implementation of the PDO, the burden is reduced even more, from €2.54 to approximately €6.76.
It is worth noting the significant reduction of the initial rate recommended by the European experts. While the EU's initial proposal provided for a tax of €35 per tonne, Cyprus managed, after consultations at the end of 2024, to limit it to €10 per tonne.
The escalation of the tax will be gradual (increase of €5 per year from 2028), giving time to Local Government Authorities and citizens to adapt to the new data without sudden shocks.
According to the proposed framework, from the entry into force of the Regulations until 31/12/2027, the rate is set at €10 per tonne. From 01/01/2028 onwards, it will increase by €5 per tonne per year, with a maximum of €70 per tonne.
Without the PDO system, the additional burden on households would amount to €10.60, in 2030 it would skyrocket to €26.50 and in 2035 to €53.00. With proper recycling and the reduction of landfilling, the cost is reduced to €6.76.
On the contrary, the estimated additional burden per household with the implementation of the PDO, in addition to the existing garbage fee, is estimated at €2.54 in 2026, €6.76 in 2030 and €10.51 in 2035, in case of achieving a landfill rate of 30%. If the national target of limiting landfill to 10% is achieved, the burden in 2035 is estimated at €3.50 per household.
€48 million reimbursed as compensatory measures
The reform is fiscally neutral. This means that every euro collected from the tax will be returned to the Municipalities and Communities as compensation for:
• Supply of home composters and special bins.
• Purchase of modern equipment (compressors, shredders).
• Financing of contracts for the separate collection of recyclable and household waste.
In addition, the Government allocates €48 million to this effort. in total, combining resources from the Recovery and Resilience Plan of €23 million. and the Cohesion Policy Program "THALIA" €25 million, ensuring that Local Government Authorities will have the tools to support the citizen in practice.
In her statements, the Minister of Agriculture, Maria Panagiotou, stated that the government's goal is clear and these fees will not be passed on to the citizens. For this purpose, he explained, the Local Authorities will receive a total of €48 million for the implementation of the PDO, of which €23 million. stem from the approval of the Landfill Tax – a crucial milestone of the Recovery and Resilience Plan.
In 2026, the gradual allocation of €48 million for the separate collection will begin depending on the progress of the implementation of the ATA action plans. Of course, there are still pending issues, such as the submission of the action plans and the completion of the upgrade of the infrastructure in the OEDA. The state has already commissioned a special study to ensure that the upgrade will be done correctly, avoiding the mistakes of the past, such as those we saw in Pentakomo.
"Today's development is not just a technical arrangement. It is a decisive step towards a new era in waste management: reducing volumes, enhancing recycling, protecting the environment and – most importantly – a just transition without burdening citizens.
