Modern Trends of the Economy Introduced in Cyprus by 2021: Green Tax Reform

Very recently the Cypriot Minister of Finance, Mr. Harris Georgiades, while speaking to the press on the sidelines of the 20th Global Conference on Environmental Taxation, surprisingly stated that the government is ready to introduce in 2021 the so-called “Green Tax Reform”.

In particular Mr. Georgiades said that modern trends of the economy are in the direction of environmentally friendly tax reforms, the “Green Tax Reform” that increases taxation of energy-consuming products and at the same time introduces tax reliefs primarily on labour, such as on social contributions paid by employees and employers.

The Minister noted that Cyprus is moving towards that direction and that the Ministry of Finance was in contact with the academic community and with the European Union in order to finalize a policy proposal which is currently being prepared and which will be launched for public consultation within the first months of 2020, so that it could be implemented by 2021.

He then clarified that “this should be a fiscally neutral tax reform” and he added that the reform will be introduced in order to enable Cyprus to achieve its binding environmental goals and to boost competitiveness and job creation.

During his speech at the Conference, Mr. Georgiades pointed out, that even though he would not be able to take the lead in that effort, as he stands down from its position as Finance Minister, he was confident that the reform would be successful and he promised to personally remain engaged by providing continuing support.