Two green taxes remain under discussion with the EU, both in terms of content and compensatory measures, government spokesman Konstantinos Letymbiotis said on Tuesday.

He added that the final proposal would not be presented to Wednesday’s cabinet meeting, pending the necessary legal review.

Letymbiotis said the issue was discussed during the president’s regular meeting with cabinet members, in light of ongoing consultations with the EU.

“It was not the first time it was discussed,” he added, noting that the green tax is a prerequisite for Cyprus’ Recovery and Resilience Plan and that decisions are being made with the EU’s input.

“This government’s intention is for the green taxation to be fiscally neutral,” the spokesman said.

He pointed out that the water tax had already been introduced and announced.

Last month, finance ministry permanent secretary Andreas Zachariades said the implementation of green taxes, originally expected in May, was being postponed.

He explained that the carbon taxes would likely be introduced over the summer, while the planned overnight stay fee for tourists would probably be delayed until the end of 2026, as it is not part of the Recovery and Resilience Plan.

“We still have time (for the green taxes), because the EU procedure has a time delay as well. But it is something that should happen within the next two or three months. It won’t be in May, but it might be in the summer, before the House recess,” Zachariades said.

For this year, the carbon tax is set at approximately 5.95 cents per litre, with an increase of 10 cents in 2026. By 2027, the cost is projected to reach 18 to 20 cents per litre, including the 5.95 cents imposed this year.

Regarding the overnight stay fee, which will be €2.50 per night and affects the hotel industry, Zachariades said the measure was not a commitment towards the European Commission.

As for other green taxes, Zachariades said the water fee, at €0.01 per cubic metre, has already been implemented, while the waste fee is still pending.