Nicosia, Cyprus. Finance Minister Makis Keravnos said on Monday that now is not the time to impose ‘green taxes’ and further burden households, amid an energy crunch linked to the war in the Gulf. He reiterated that the government will roll out relief measures if and when necessary.
Position on ‘green taxes’
Speaking to the Sigma television channel, Keravnos said he does “not see the reasons” for implementing ‘green taxes’ at this moment. He added that those concerned about an additional tax burden “can rest easy.”
Background and planned measures
The green taxation is part of Cyprus’ commitments under the Recovery and Resilience Facility and was supposed to have been introduced last year. The government entered talks with the European Commission and held off the measure.
The planned tax package included levies on fuel, waste and water.
Debate over postponement
The measures have faced calls to be scrapped or postponed due to inflationary pressures on consumers and businesses. The government has indicated that the ‘green taxes’ cannot be cancelled, only delayed.
It remains unclear what new deadline, if any, the government has to introduce the taxation.
Relief measures amid rising fuel prices
With fuel prices climbing amid the war in the Middle East, Keravnos was asked what relief package the government has in mind. He declined to provide specifics, saying the government has designed measures to tackle the anticipated rise in the cost of living.
“We will speak when the time is right,” he said. “We are fully ready, and when needed, we will implement the measures, providing relief to people and mitigating any adverse impacts on our economy.”
What relief measures do you want the government to prioritise if fuel prices continue to rise?