Cyprus parliament approves business organization law but rejects landfill tax

On Tuesday, the Cyprus parliament unanimously approved the establishment of the Cyprus Business Development Organization (KOAE) to improve access to financing for small, medium, and startup enterprises with an initial capital of €60 million. However, the parliament rejected a government-proposed landfill tax bill with 26 votes against and 19 in favor. The rejected legislation aimed to impose a €10 per ton tax on municipal waste sent to landfills, rising to €70 per ton by 2028, as part of a green tax reform. Proponents argued the bill was necessary to align with EU targets, aiming to reduce landfill waste from 68% to 10% by 2035 and secure €23 million in Recovery and Resilience Facility funds. Opponents, including AKEL, ELAM, and the 'Alma' and 'Immediate Democracy' parties, criticized the government for attempting to pass costs to citizens without adequate infrastructure. The government warned that the rejection prevents the disbursement of €23 million in EU aid, which would have totaled €48 million when combined with national co-financing. The KOAE establishment remains a key milestone linked to the country's Recovery and Resilience Plan, with a projected annual operating cost of €1.5 million.