The Cypriot government does not intend to levy a tax on renewable energy sources (RES) from road transport, local media reported.
In a statement, the ministry responded to the Cyprus Consumers Association, which warned that the new bill currently being discussed in the House of Representatives contains a clause on introducing a renewable energy tax on motor fuels.
“We suggest that the Cyprus Consumers Association, before it makes announcements that misinform the public, obtain reliable information from our ministry. In fact, such a clause already exists in current legislation, but has never been applied. Thus, the existing paragraph was simply copied into the new bill,” the ministry said.
Officials cited a clause in the current law, adopted back in 2013, which provides that the state charges for the consumption of energy products other than electricity, such as conventional fuels.
“From 2013 to the present, the government has not introduced such a levy on automotive/heating fuels, despite the fact that imposing high taxes on liquid fuels is a common practice in almost all EU member states as part of the “green tax reform” aimed at preventing or reducing the use of traditional fuels and facilitating the transition to a green economy,” the ministry stressed.
The ministry added that they do not intend to activate this item within the next year. The current increase in oil prices is already affecting consumers.
On the contrary, the government has taken many steps to offset rising gas and electricity prices at gas stations, such as lowering VAT and consumption taxes.
The ministry also politely declined the Consumers Association’s request to sit on the committee managing the Renewable Energy and Energy Conservation Fund.