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Landfill tax bill under discussion as Cyprus risks losing €23m EU funding

In-Cyprus · 2026-06-27

AI SUMMARY

• What happened: Cyprus is discussing a proposed landfill tax bill aimed at improving municipal waste management, with a deadline to approve it by August 31 to avoid losing €23 million in EU funding. • Why it matters: The legislation is part of Cyprus's green taxation reform and commitments under the National Recovery and Resilience Plan, which aims to reduce the high percentage of household waste sent to landfills, currently at 68%. • What to watch next: The outcome of the discussions in the House Environment Committee and the response from local authorities regarding the implementation of the tax and necessary infrastructure improvements.

Local eutaxTop Newswaste Landfill tax bill under discussion as Cyprus risks losing €23m EU funding Skivalotopos Skoupidotopos Skoupidi 1024x576 Relevant News Landfill tax bill under discussion as Cyprus risks losing €23m EU funding 27 June 2026 Goat and sheep farmers demand emergency aid over feed costs amid livestock movement restrictions 27 June 2026 Oroklini currents and lifeguard staffing under scrutiny after deaths of two Somali women 27 June 2026 Angelos Nicolaou 27 June 2026 FacebookXWhatsAppEmailPrintViber Proposed legislation introducing a landfill tax to address what officials describe as disorder in municipal waste management in Cyprus is currently under discussion in the House Environment Committee, with lawmakers facing a tight deadline before the summer recess. The measure forms part of the country’s green taxation reform and commitments under the National Recovery and Resilience Plan, with a completion milestone set for June 30, 2026. Cyprus committed to the reform in 2021 as part of efforts to secure more than €1 billion from the European Commission. Failure to approve the relevant regulations by August 31 would result in the loss of €23 million, according to the report. The proposed regulations concern taxation on the final disposal of municipal waste in landfill sites, as well as the introduction of offences and penalties. The legislation is not linked to an obligation to align with specific EU law, the report said. Data from the Department of Environment show that 68% of household waste currently ends up in landfill, far above the EU target of limiting landfill disposal to 10% by 2035. Under the plan, revenue from the landfill tax would be placed in the Environment Department’s budget and used to subsidise waste collection costs or invest in projects by local authorities aimed at improving waste management. The tax is also intended as a policy tool to support the transition to a circular economy and to ensure gradual implementation of the “pay as you throw” system for municipalities. The levy would start at €10 per tonne of municipal waste sent to landfill and increase gradually by €5 per tonne each year from 2028, reaching a maximum of €70 per tonne by 2039. Officials said that although the rate would rise over time, the overall revenue is expected to decline as waste volumes sent to landfill are projected to fall due to increased recycling and separate collection systems. Local authorities, however, have expressed concern over the draft regulations, saying the tax should not be introduced before key infrastructure and systems such as “pay as you throw” are fully in place. Representatives of the Union of Municipalities and the Union of Communities have said they do not agree with the introduction of the tax at this stage, arguing that previous policy delays and planning failures should not be passed on to households. Under the proposal, local authorities would pay the landfill tax to the landfill operator, who would then transfer the funds to the Environment Department’s revenue account, where they would be used for compensatory and investment measures supporting waste management and circular economy projects. Subscribe to our Newsletter Latest News Goat and sheep farmers demand emergency aid over feed costs amid livestock movement restrictions Oroklini currents and lifeguard staffing under scrutiny after deaths of two Somali women Police investigate death of 12-month-old baby in Limassol as autopsy fails to determine cause Over 100 convicted sex offenders against minors under supervision as Cyprus reform law stalls Cyprus signs cooperation deal with OLAF for access to company registers and beneficial ownership data Saudi media reports allege Muslim Brotherhood-linked networks used north Cyprus as transit hub Explosive drone targets Iranian Kurdish opposition camp north of Iraq’s Erbil, security sources say Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.

Source: In-Cyprus
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