Sharp diplomatic and economic tensions have emerged between the Cypriot central government and local municipalities following the Ministry of Agriculture’s announcement of its intent to introduce a new waste landfill tax, known as the “burial fee.” The Union of Cyprus Municipalities claims the planned measure would place local authorities in a “catastrophic” financial position, with costs ultimately being passed on to the public. Mayors argue that the state is attempting to mask its own infrastructural failures through taxation.
The conflict erupted in early February 2026 when the government—citing requirements under the European Union’s Recovery and Resilience Facility (RRF)—tabled a proposal to tax waste landfilling. Officially, the goal is to reduce waste production and incentivize recycling; however, municipalities argue that the system’s introduction is premature and unjust.
The Pentakomo Files: 80% Landfill Rate
A primary argument for the protest centers on the inefficiency of state-run waste processing units, particularly the Pentakomo plant. Kyriakos Xydias, Mayor of Amathunta and head of the municipal union’s waste management working group, pointed out fundamental contradictions in the system:
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Planned vs. Reality: While the national waste management plan dictates that the landfill rate should remain below 20%, currently approximately 80% of the waste entering the Pentakomo unit is buried directly.
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State Responsibility: Municipalities emphasize that the Pentakomo plant is under state management; therefore, the lack of efficiency and high burial rates represent failures of the central government, not local authorities.
Mayors assert it is unacceptable for the state to impose a punitive tax on a process (landfilling) for which it cannot provide a more efficient alternative.
Citizens to Bear the Burden: Drastic Fee Hikes Expected
The proposed tax would directly impact household budgets. While negotiations regarding the exact amounts are ongoing, professional organizations warn that a steep rise in waste collection fees is inevitable if municipalities must pay an extra burden for every ton of landfilled trash.
Andreas Vyras, Mayor of Larnaca and President of the Union of Cyprus Municipalities, stated that local authority budgets are fixed and cannot absorb additional millions in expenses. Vyras emphasized that the government is not communicating transparently with citizens about the expected price hikes and that municipalities will be made scapegoats for the increased bills.
Uncertainty Surrounding “Pay as you Throw”
The background of the dispute involves difficulties in implementing the “Pay as you Throw” (PAYT) system. Among Cyprus’s European obligations is the nationwide expansion of this system, which was originally scheduled to launch in July 2024. The target date has been moved several times, with a gradual rollout now planned for 2026–2027. However, municipalities argue that the necessary infrastructure—such as units capable of processing organic waste—is still missing.
Mayors maintain that introducing a burial fee before the full and functional launch of the PAYT system is merely another “tax” rather than an environmental incentive.
Next Steps and Resistance
The Union of Cyprus Municipalities announced that it will discuss the matter at the executive committee level and is preparing for a “strong reaction.” They demand that the government take responsibility for the state of the waste management infrastructure and stop shifting costs onto municipalities and residents.
The waste management crisis in Cyprus has become not just an environmental issue but a serious political question, fundamentally challenging the cooperation between the state and local branches of power in the green transition process.
Official Sources and References:
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Original News Source: Cyprus Mail – Municipalities oppose waste burial fee, warn costs will hit households
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Responsible State Body: Cypriot Ministry of Agriculture, Rural Development and Environment (moa.gov.cy)
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Municipal Representation: Union of Cyprus Municipalities (ucm.org.cy)
