The green transition is achieved by promoting various actions mainly through the Recovery and Sustainability Plan as well as the actions included in the EU reform package "Fit for 55". The name of the package refers to the EU target of reducing greenhouse gas emissions by at least 55% by 2030.
"Fit for 55" includes, among other things, energy saving and renewable energy projects, a plan to promote energy storage, plans to promote electricity, and a recast of the Energy Taxation Directive.
The plans promoted by the government
With regard to e-mobility, the government is already promoting various projects such as: a) incentives for the purchase of electric vehicles b) purchase of electric vehicles and motorcycles for the needs of the public sector c) promotion of the widespread use of electric vehicles through a general policy framework which includes installation 1000 recharging points and d) withdrawal of polluting vehicles.
The new taxes that are coming
According to the Ministry of Finance, the imposition of environmental fees / taxes, such as the adoption of a carbon tax, which includes fuel, and environmental fees to protect valuable natural resources, such as water, as well as landfills to achieve environmental goals, are being considered. but also other actions included in the "Fit for 55" reform package.
The fees / taxes that will be imposed may be new or a revision of existing ones.
Compensatory measures by the Ministry of Finance
The policy of the Ministry of Finance is fiscally neutral reform, which aims to offset any tax increases, with other tax cuts focusing on employment taxation.
As the Ministry of Finance stated in ThemaOnline, in the context of the formulation of compensatory or other measures, an impact analysis study from the new taxes / fees will be carried out. "The planning is still in the very early stages to give more details," said the Ministry of Finance.
Cyprus' independence from fossil fuels
The range of policies covered by the National Energy and Climate Plan includes the policy on fossil fuel recovery. The preparation for the issuance of Green Bonds and the promotion of green investments by both the private and the public sector have an important role in the implementation of a Green Tax Reform.
According to the Ministry of Finance, "these actions require cooperation with the competent Ministries, especially for the implementation of the National Plan for Recovery and Sustainability, the penetration of RES, electricity, etc., taking into account the changes that will bring the EU reform package. '' Fit-for-55 '", noted the Ministry of Finance.
As the Ministry of Finance stated in ThemaOnline, the green tax reform will include all the reforms in one package. The bill will be submitted to Parliament in 2022.
tothemaonline.com