Public consultations on draft legislation imposing a carbon tax on energy products and daily accommodation fees
Public consultations on draft legislation imposing a carbon tax on energy products and daily accommodation fees closed on 19 March 2024.
The legislation would impose a carbon tax (subject to certain exceptions) on:
The carbon tax would be imposed on energy products even if they are exempted from the imposition of excise duties. In addition, value added tax (VAT) would be charged and collected on the value of products subject to carbon tax.
The legislation would impose a daily accommodation fee of €2.50 charged to every resident using a room or accommodation or living space in hotel units, tourist accommodation, and self-catering units in Cyprus.
No VAT would be imposed on the accommodation fee.
The Ministry of Finance is seeking to impose both taxes from 1 April 2024.
Read a March 2024 report prepared by the KPMG member firm in Cyprus