The Cypriot government is working to replace commitments made under the Recovery and Resilience Plan to avoid implementing "green taxes" on fuel, water, and waste. Finance Minister Makis Keravnos clarified that these taxes are not a requirement from the European Commission but were instead a commitment made by the previous administration.

Speaking on Sigma TV, Keravnos explained that the current government successfully postponed the introduction of green taxes from December 2022 to May 2025. Additionally, it managed to eliminate a minimal tax on production fuels and convinced the EU to limit the duration of any tax imposed to two years.

Over the past month, a major debate has emerged in public discourse, led by a segment of the political sphere, regarding the non-mandatory nature of these taxes and their disproportionately heavy burden on Cypriot citizens.

The minister acknowledged that finding alternative measures to replace these taxes within the framework of the Recovery and Resilience Plan is challenging but remains a priority. He also dismissed claims that these taxes would constitute a "tax storm," stressing that if implemented, the tax on transportation fuel would be capped at five cents per liter.

In a separate statement, Keravnos discussed the reduction of VAT on electricity from 19% to 9%, describing it as a significant relief for households, vulnerable consumers, and small businesses. He rejected claims that the reduction was imposed by the European Commission, emphasizing that it was a government-led initiative aimed at easing financial burdens. Due to EU regulations, the VAT cut must be applied uniformly to all electricity consumers, rather than being targeted at specific groups.