Philenews

Cabinet Decision: €10.60 Levy in 2026 for Municipal Waste Landfill Tax – Rate Reduction After Negotiation with the EU

Published February 18, 2026, 12:16
Cabinet Decision: €10.60 Levy in 2026 for Municipal Waste Landfill Tax – Rate Reduction After Negotiation with the EU

The Cabinet decided to implement a Municipal Waste Landfill Tax, with a levy of €10.60 per household in 2026, in order to protect the environment and achieve European goals for reducing waste ending up in landfills. The decision takes into account the need to comply with European goals, which require reducing the percentage of municipal waste ending up in landfills to 10% by 2035. The levy will be lower for those implementing the “Pay as You Throw” (PAYT) system. After negotiations with the EU, Cyprus managed to reduce the initial tax rate from €35 per tonne to €10 per tonne. The tax will increase gradually by €5 per year from 2028, with a maximum limit of €70 per tonne. The measure is fiscally neutral, as revenues from the tax will be returned to Municipalities and Communities for the supply of equipment, strengthening recycling and supporting citizens in proper waste management. In addition, €48 million in total is available from European funds.