The Cypriot Ministry of Finance has initiated a public consultation on two draft bills aimed at revamping green taxation policies. Proposed reforms include clarifying the scope of an accommodation tax and imposing strict penalties for noncompliance. Additionally, a carbon tax on motor fuels and polluting industries is set to be introduced gradually from 2024, accompanied by detailed application guidelines. The bills also entail implementing a carbon tax on energy products, regardless of their exemption status from excise duty, and applying VAT on energy products subject to the carbon tax. Certain classes of gasoline oil are expected to be exempt from the carbon tax obligation. The draft bill related to the carbon tax is anticipated to be effective from April 1, and stakeholders have been invited to provide feedback by March 19 during the public consultation period.
Source GlobalVATcompliance
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