The House of Representatives approved the abolition of the annual corporate tax levy, leading to a €45 million revenue gap for the government. Questions loom over the government’s plan to address the shortfall and the implications for future fiscal policy, as approximately 1,300 companies prepare to be refunded for fees paid in 2024.
The PEO union is advocating for a windfall tax on banks and renewable energy companies to mitigate the impact of upcoming green taxes on fuel, water, and hotel accommodations, ensuring a fairer economic burden on society. This proposal aims to support vulnerable groups through social policies while addressing the concerns of rising living expenses and potential adverse effects of green taxation.
British retirees in Cyprus are bracing for a tax overhaul in 2025, with their UK state pensions set to be taxed by the UK instead of Cyprus. The shift could lead to higher tax rates, impacting expats’ income as UK taxes tend to be higher than those in Cyprus.
The EY Cyprus Seminar on green taxation and sustainability emphasized the urgent need for businesses to comply with EU sustainability mandates, adapt to ESG standards, and explore the benefits of carbon credit generation in Cyprus to avoid taxation penalties. With expert insights from influential figures like Marilena Raouna and Shawn Maher, the seminar highlighted the critical importance of early adoption of sustainability practices and the integration of sustainability data in corporate reporting for a more ecoconscious future.
Cyprus is facing challenges with implementing environmental taxation, including concerns over high costs and fairness. The country is also struggling to transition to solar energy and electric vehicles due to limitations with its power grid. Balancing these issues with public opinion and technological readiness will be crucial in shaping Cyprus’s environmental roadmap.
