Cyprus Postpones Introduction of “Green” Fuel Taxes

The implementation of new “green” fuel taxes in Cyprus has been delayed until the end of May — and possibly even into the summer. The carbon emissions levy is now expected to be rolled out within the next two to three months.

This was confirmed by the Permanent Secretary of the Ministry of Finance, Andreas Zachariades, who explained that the delay is linked to setbacks in a similar process at the European Union level.

“It won’t happen in May, but it could be introduced sometime this summer,” Zachariades told reporters ahead of Parliament’s recess.

For 2024, the carbon tax is expected to be around 5.95 cents per litre and will rise by another 10 cents in 2026. Regardless of national decisions, however, the launch of the EU’s ETS2 emissions trading system in 2027 will make the carbon tax mandatory across member states.

By 2027, the total tax is expected to reach 18 to 20 cents per litre, including the already planned 5.95 cents.

The government estimates that the tax could generate about €70 million in revenue over the next 18 months. To offset the impact, authorities are preparing support measures such as subsidies for vulnerable groups and vehicle replacement programs.