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Government Introduces New Waste Disposal Tax

The government has approved a new tax on the sanitary landfilling of municipal waste as part of broader efforts to strengthen environmental policy and reduce long-term waste management costs. The measure aims to cut the volume of waste sent to landfills and align Cyprus with European environmental targets.

Overview: Strategic Environmental Alignment

The Cabinet approved the proposal submitted by the Minister of Agriculture, setting a clear objective: by 2035, only 10% of municipal waste generated in the country should be disposed of through sanitary landfills. Officials say the reform is intended to support environmental sustainability while limiting the financial burden on households.

Structured Tax Scale With Consumer Considerations

Under the new framework, a fee of €10 per ton will apply from the start of implementation through December 31, 2027. Beginning January 1, 2028, the fee will increase by €5 per ton each year until reaching a maximum of €70 per ton. The initial rate is lower than the original European recommendation of €35 per ton, following consultations aimed at reducing immediate economic pressure.

Authorities estimate that without the complementary Pay As You Fly (POΠ) system, the annual cost per household would be approximately €10.60, rising to €26.50 by 2030 and €53.00 by 2035. Increased recycling and lower landfill volumes could reduce those costs to around €6.76 per household. With the POΠ system in place, projected costs are lower, reaching €2.54 in 2026, €6.76 in 2030 and €10.51 in 2035 under a 30% landfill scenario. If national targets are achieved, the estimated cost could fall to about €3.50 per household.

Fiscal Neutrality And Investment In Local Infrastructure

The government has stated that the measure is designed to be fiscally neutral. Revenue generated from the tax will be returned to municipalities and communities to support local waste management improvements. An estimated €48 million will be directed toward infrastructure and operational upgrades, including:

  • procurement of household composters and specialized collection bins
  • acquisition of waste processing equipment such as compactors and shredders
  • financing contracts for separate collection of recyclables and municipal waste

Funding will come from the Recovery and Resilience Plan, which allocates €23 million, combined with €25 million from the Cohesion Policy Program THALEIA. Officials say these resources will help local authorities manage the transition and support residents as new systems are introduced.

Looking Ahead: A Blueprint For Sustainable Waste Management

The reform represents a broader shift toward a more modern waste management framework. Authorities have introduced a gradual implementation schedule to allow municipalities and households time to adapt, with annual increases beginning in 2028. An expert study has also been commissioned to guide infrastructure upgrades and reduce implementation risks.

According to Agriculture Minister Maria Panayiotou, the objective is to deliver measurable environmental benefits while keeping household costs manageable. As implementation begins in 2026, funding distribution and monitoring mechanisms are expected to support local action plans and advance national sustainability goals.

Banks Required To Refund Unauthorized Transactions Immediately, Confirms EU Prosecutor

Introduction

Advocate General Athanasios Rantos of the Court of Justice of the European Union stated that banks must refund customers without delay for unauthorized transactions, even when the client may have acted with gross negligence. The opinion clarifies how European legislation should be applied in cases involving payment fraud.

Case Overview

The case concerns a Polish bank customer who became the victim of a phishing attack. A fraudster posed as a buyer on an online auction platform and sent the customer a link that closely resembled the bank’s official website. After entering her login credentials, the customer unintentionally gave the attacker access to her account. The fraudster subsequently carried out unauthorized transactions.

The bank refused to reimburse the funds, arguing that the client had demonstrated gross negligence by entering her banking details on the fraudulent website. The dispute was later brought before the Polish courts.

Legal Implications

The Polish national court asked the Court of Justice of the European Union to clarify whether European law requires banks to refund unauthorized payments immediately, even when the customer may have acted negligently.

Advocate General Rantos stated that EU legislation requires banks to restore the funds without delay unless the institution has reasonable grounds to suspect fraud and has formally reported the matter to the competent authorities. The opinion also explains that an immediate refund does not prevent the bank from later seeking compensation if it can prove that the customer failed to comply with their obligations under payment services regulations.

Consumer Protection And Regulatory Outlook

European payment legislation places strong emphasis on protecting consumers from financial fraud. The regulatory framework aims to ensure that users of payment services receive prompt reimbursement when unauthorized transactions occur. Banks may still investigate individual cases and pursue legal action if they believe the customer breached their responsibilities under payment service rules.

Conclusion

The Court of Justice of the European Union will now consider the Advocate General’s opinion before issuing its final ruling. Such decisions are often influential in shaping the interpretation of EU law. A ruling in line with the opinion could have significant implications for banks across the European Union and for how financial institutions handle reimbursement claims in cases of payment fraud.

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The Future Forbes Realty Global Properties
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