The Union of Municipalities on Wednesday welcomed parliament’s rejection of a proposed municipal waste landfill tax, describing the outcome as a “responsible” decision and calling on the government to begin discussions on a fairer waste management framework.

Following Tuesday’s House plenum vote, the union said the decision reflected concerns it had repeatedly raised that local authorities and households should not bear the financial consequences of shortcomings in the state’s waste management system.

“The decision justifies our documented and persistent interventions,” it said, arguing that neither local government nor the public “can bear the cost of the state’s perennial weaknesses in creating the necessary infrastructure and conditions for effective waste management”.

Parliament rejected the legislation by 26 votes to 19 after MPs from several parties argued that Cyprus had failed to establish the infrastructure required to reduce landfill dependency before introducing additional charges.

The government had proposed an initial landfill levy of €10 per tonne, warning that rejecting the measure could place €23 million in European Union funding at risk.

The union of municipalities reiterated that it supports Cyprus’ environmental commitments and the transition to a circular economy but said those objectives must be achieved through coordinated planning rather than additional costs for households.

“The achievement of these goals requires comprehensive planning, adequate infrastructure, substantial cooperation of all stakeholders and a fair distribution of responsibilities,” it said.

It added that environmental targets “cannot be achieved by transferring the cost to citizens for omissions that are not their responsibility”.

The union also called on the government to begin immediate consultations with local authorities to develop what it described as “an applicable and fair framework” capable of meeting both environmental obligations and the country’s commitments to the European Union without imposing what it called unjustified financial burdens on the public.

Following Tuesday’s vote, the agriculture ministry described parliament’s decision as “a particularly negative development”, warning that Cyprus could lose €23 million in European funding earmarked for waste management projects. The ministry said that, together with national co financing, the available funding would have totalled approximately €48 million and maintained that the government remained committed to implementing its broader waste management strategy.

The union said it would continue to submit “responsible and documented proposals” aimed at shaping an effective waste management policy that serves the environment, local government and society.