The green taxes that were initially expected to be implemented in May are being postponed, according to Andreas Zachariadis, Director General of the Ministry of Finance.

Specifically, the carbon tax on fuels will be delayed until summer, while the overnight stay tax is likely to be pushed back to the end of 2026, as it is not tied to the Recovery and Resilience Plan (RRP).

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When asked when the carbon tax bill is expected to reach Parliament—given that implementation was scheduled for May—Zachariadis explained that “we still have some leeway, as the EU process itself involves some delay, but this is something that needs to be done within the next two to three months.” He added that “it won’t be in May, but possibly during the summer,” before Parliament’s recess.

For this year, the carbon fuel tax is estimated at nearly 6 cents per litre (€0.0595), and it is expected to increase by another 10 cents in 2026. Zachariadis emphasized that “it is important to understand that regardless of this tax, under ETS2 (the EU Emissions Trading System), carbon taxation will be introduced in 2027 anyway.”

He estimated that the cost in 2027 will be around 18–20 cents, clarifying that the 6 cents introduced this year will be deducted from that amount, not added to it. Therefore, he concluded, “this is not something we can avoid.”

According to Zachariadis, the carbon tax is expected to generate around €70 million in revenue over the next 18 months. Equivalent offset measures are being planned, including subsidies for vulnerable groups and car replacement schemes.

He noted that “a final decision is still pending on how much will go toward subsidies for vulnerable households and how much toward car replacement schemes,” adding that subsidies may ultimately receive a larger share.

As for the overnight stay tax, which will amount to €2.50 per night and directly affect the hotel industry, Zachariadis clarified that this measure is not a commitment to the European Commission and will therefore be handled differently.

“There is a good degree of agreement with hoteliers,” he said. “It is most likely to be implemented sometime in 2026—possibly toward the end, to coincide with the next tourism season.” He also confirmed that offset measures would be introduced for hoteliers in this case as well.

Among the other green taxes, Zachariadis confirmed that the water levy, set at €0.01 per cubic meter, has already been approved. The waste management fee, however, is still pending.