Finance Minister Makis Keravnos, in his statements following the meeting of the Counseling Committee (SOE), which was involved in tax reform, confirmed the “citizen” report.
The minister Finance, Makis Keravnos, will try until the last minute to win an extension of the application of green taxation on fuel, water, waste and hotels, but in the meantime it is expected that the relevant bills are approved by the Council of Ministers by the end of the month.
The government has separated the tax reform from the import of Green Taxes and is not discussing it in combination. However, he acknowledges that the increase in fuel price is a measure that will cause discontent, despite the fact that green taxation is neutral, that is, additional taxes will be refunded to vulnerable households and businesses.
Green taxation will lead from May to increase the price of liquid fuels by 5 cents. The water supply will fee € 0.01/cubic meter and the hospitality industry will be applied overnight for € 2.50 per night. The purpose of taxation is to reduce greenhouse gas emissions by 32% by 2030 compared to 2005 levels, that is, the additional charges lead to consumer behavior change.
Green fuel tax will increase to 7 cents in the second year of application and 10 cents in the third and by 2027 the market for road transportation and buildings will enter our lives. In 2027 the burden on fuel from the market for pollutants is estimated at 6.8 cents. Overall, the combination of pollutants and green tax will cause an increase of almost 17 cents per liter of gasoline.
Both burdens are mandatory. Green taxation is part of the national recovery plan and is linked to a disbursement of approximately EUR 70 million from the European recovery mechanism. The new broadcasting system is provided by a relevant Community Directive and applies to all Member States.
Confirms Makis Lightning
Finance Minister Makis Keravnos, in his statements following the meeting of the Counseling Committee (SOE), which dealt with tax reform, confirmed the “citizen” report.
We do not stop, he said, our efforts to diversify the milestone for application next May of Green Taxes related to fuel, water and waste for which there is a commitment.
Specifically, asked if green taxes will be implemented next May, Mr Keravnos said that for green taxes on fuel, water and waste “there is a commitment because they have been included in the durability and growth plan and specific milestones have entered”.
“The milestones were in November 2022” and “through many efforts we managed to bring them until May 2025,” he said, adding that “we were able to deduct carbon taxation from businesses so as not to create inflationary other pressures and also persuaded only two years.”
“Efforts are continuing and I hope there is the best possible result for both the tax burden on society but also to create a mentality that we can perceive and deal with the most appropriate way and the problems of the environment and climate change that is a worldwide phenomenon that concerns everyone.”
Called to clarify whether it will be examined whether they will be imposed in May or whether they are extended, Mr Keravnos said that “the milestone is in May, but that does not mean that our efforts to diversify.”