Parliament to vote on landfill tax and business development agency establishment

On July 14, the Cypriot Parliament will vote on two significant reform bills linked to the National Recovery and Resilience Plan. The first bill establishes the Cyprus Business Development Agency (KOAE) with 60 million euros in initial state capital to support small and medium-sized enterprises and startups. The second bill introduces a landfill tax on municipal waste, starting at 10 euros per ton until 2027, then increasing annually by 5 euros to reach 70 euros per ton by 2035. The government aims to reduce landfill waste from 68% to 10% to meet EU targets. While the government frames the tax as a necessary green reform, political parties including ELAM and Alma oppose it, while others express serious reservations. Unions argue the tax could increase municipal fees for citizens before adequate recycling infrastructure is built. Approval of these laws is a prerequisite for releasing Recovery and Resilience funding.