At the Parliamentary Energy Committee on Tuesday, the effects of green taxation – The Minister of Finance or his representative has been invited to attend
The impact of green taxation on households and businesses in sectors such as tourism, industry and agriculture > and the need to grant compensatory measures, will be the focus of discussion in the parliamentary Committee Energy, of Trade, Industry and Tourism, on Tuesday.
The matter, for which the Minister of Finance or his representative was invited to attend, will be discussed ex officio, following a proposal by the MPs Kyriakos Hatzigiannis, Kostas Kostas and Stavros Papadouris .
It is recalled that based on the Carbon Tax on Energy Products Law, the Government will impose a tax on motor fuels of the order of 5 cents in 2024 and on polluting industries. In parallel, with the Law on the Imposition of Accommodation Fees in the Republic of Cyprus, the Government will impose a fee of €2.5 per night.
As the Minister of Finance Makis Keraynos had stated, the imposition of green taxation will be fiscally neutral, since there will be compensatory measures in the context of the tax reform that is being stalled by the Government. The Economic Research Center of the University of Cyprus has already presented scenarios for these taxes and the proposed compensatory measures.
In addition to the Ministry of Finance, the Director General of the Ministry of Energy, Trade and Industry, the Director General of the Ministry of Transport, Communications and Works, the Director General of the Directorate General of Agriculture and Rural Development and the Director General have been invited to discuss the matter in Parliament of the General Directorate of Environment of the Ministry of Agriculture, Rural Development and Environment as well as the Director General of the Deputy Ministry of Tourism.
Also invited were representatives of the University of Cyprus, the Cyprus Consumers' Association, the All-Cypriot Consumers and Quality of Life Union, the trade unions Pangyprian Labor Federation (PEO), Confederation of Cyprus Employees (SEK), Democratic Labor Federation of Cyprus (DEOK), the employers' organizations Federation of Employers and Industrialists (OEB), Cyprus Chamber of Commerce and Industry (KEBE) and General Confederation of All Cyprus Organizations of Craftsmen Professional Store Managers (GS POVEK), the All Cyprus Association of Hoteliers (PASYXE), the Association of Cyprus Tourism Enterprises (STEK), the Association of Travel Agents of Cyprus Agents (ACTA) and the Coalition of Small Businesses and Self-Employed (SYMEA).
Furthermore, the session will discuss on principle a proposal for a law to reduce the daily and overall maximum financial burden that can be imposed on a person which refuses, omits or neglects to fulfill obligations to submit information on the beneficial owners of legal entities or trusts, the issue of luxury “Glamping” camps, while the Regulation of the Establishment and Operation of Hotels and Tourist Accommodation (Amendment) Regulations will be reviewed of 2022 and the Law of 2022 on the Establishment and Operation of Visitable Farms.
The last two issues will be subject to review following the postponement of the issue by decision of the Plenary of the legislative body.
