Cyprus to Amend Landfill Tax: Phased Increase Until 2039, 'Pay As You Throw' System Starting 2027

Cypriot authorities are revising the landfill tax: it will increase incrementally until 2039. Parallel to this, the government plans to implement the 'Pay As You Throw' (PAYT/ΠΟΠ) system starting in 2027, aimed at significantly reducing waste volumes through source separation.

Minister of Agriculture, Rural Development and Environment Maria Panayiotou, following a Council of Ministers meeting, noted that the landfill rate has already been reduced from €35 to €10. Starting in 2028, a gradual increase of €5 per year is scheduled.

According to the Minister, the phased mechanism gives the state time to complete the network of facilities for processing mixed and separately collected waste under the national municipal waste management plan. Simultaneously, local authorities will be able to prepare for the full implementation of separate collection programs via the PAYT system.

Estimates suggest that without the PAYT system, the annual waste collection burden per household could reach €10.60 by 2027. Under the new model, the amount is expected to be lower—approximately between €2.54 and €6.76.

The government maintains that its goal is not to pass additional costs onto citizens. To support the reform, local government bodies will receive a total of €46 million, of which €23 million is linked to the approval of the landfill tax under the Recovery and Resilience Plan.

In 2026, the phased distribution of another €48 million for the development of separate collection will begin, depending on the progress of local action plans. Unresolved issues remain, including the submission of detailed plans and the modernization of waste processing infrastructure. The state has already commissioned a special study to avoid past mistakes, specifically the problems identified at the Pentakomo facility.

The Minister emphasized that this is not merely a technical change to a tax rate, but a strategic transition to a new waste management model—focusing on waste reduction, recycling development, and environmental protection.

According to her, the launch of the 'Pay As You Throw' system is planned for 2027. The legislative framework is already in place, and the authorities' task is to ensure its correct and fair application. The €5 annual increase will continue until 2039, though the actual financial burden will depend on the efficiency of the PAYT system and the reduction of total waste.