CYPRUS: Government to introduce Green Tax reform by 2021

Cyprus to introduce a “Green Tax Reform” by 2021 that increases taxation on energy-consuming products while providing tax relief on social contributions paid by employees and employers.

Finance Minister Harris Georgiades said that modern trends in the economy are in the direction of environmentally friendly tax reforms.

He said Cyprus is moving in this direction and announced that his Ministry is currently finalizing a policy proposal, which will be launched for public consultation early next year, so that it could be implemented by 2021.

The Ministry of Finance is in contact with academics and the European Union to help draft the proposal.

Georgiades clarified that “this should be a fiscally neutral tax reform”.

The reform would be introduced for Cyprus to achieve its binding environmental goals and to boost competitiveness and job creation.

Georgiades pointed out, that even though he would not be able to take the lead in this effort, as he stands down as Minister in a few weeks, he was confident the reform effort would be successful, and would personally remain engaged to offer his support.