Business circles expressed their concerns to Brief about the impending green taxation that will be imposed. They emphasize the importance of including compensatory measures for businesses in the study to be presented on green taxes.

In response to these concerns, a source from the Ministry of Finance told Brief that this is exactly why, on March 1st, recommendations from the University of Cyprus's Economics Research Center, which undertook the study on tax reform, will be presented at the Ministry of Finance in the presence of professional associations and businessmen.

The same source added that each interested party will be able to submit their recommendations regarding the compensatory measures for the green fees. Furthermore, according to the source, the Economics Research Center will have a meeting with associations before March 1st.

Business circles also mentioned to Brief that, given the current lack of information, it is difficult for them to submit suggestions. They note the uncertainty in how and to what extent the new green fees will be imposed and the intentions and changes in the broader tax reform in progress.

It's important to recall that the study addresses the economic impact and econometric estimates of taxation on various income classes and population groups with different characteristics. Suggestions for corresponding compensatory measures to mitigate the impact of the introduction of green taxes will also be submitted. In the initial stages of the report, the impacts on the Cypriot economy, how households are affected, particularly different income classes, as well as companies in various sectors of the economy, investments, employment, productivity, competitiveness, and fiscal matters were already measured and assessed.

The study on the broader tax reform is set to be completed in 24 months. Essentially, this impact report represents the first report by the University of Cyprus's Center on tax reform. The study is expected to be completed by the end of August 2025, in 15 phases. Specifically, this multifaceted project will be completed in 24 months, while the first recommendations on green measures and compensatory actions are expected in 2 months.