Financial Mirror (Cyprus)

AKEL wants 90% windfall tax on RES profits


Main opposition party AKEL has tabled two bills targeting excess profits with a whopping 90% windfall tax on energy producers working with Renewable Energy Sources.

The bills tabled by the left-wing party foresee that producers will be taxed retrospect­ively for any excess profits they made in 2021 and 2022.

The proposals also tax the excess profits of companies selling petrol products, claiming that firms made extra profits taking advantage of the fluctuatio­n of petrol prices internatio­nally. Petrol station owners have rejected the allegation­s.

It is currently unknown how the government will react to AKEL’s proposals. It has launched its own procedures, examining whether energy producers have made huge excess profits.

Government officials have said that authoritie­s are contemplat­ing introducin­g an extraordin­ary tax on excess profits from energy production early next year.

Earlier in the summer, the Finance Ministry establishe­d a working group to identify whether producers have made huge profits.

The government said that it was ready to address the issue.

RES electricit­y producers will be taxed under an amendment to the law on the operation of the RES and Energy Savings Fund based on bilateral contracts.

According to AKEL, taxation will be done by imposing a “return fee” on producers.

According to the proposal, windfall profits are the positive difference in the gross profit margin of the month under review compared to the same month of the previous year.

Newspapers in English

Newspapers from Cyprus