# Cyprus fiscal policy adjustments > Live situation record from CLSTR: https://clstr.news/situations/cyprus-fiscal-policy-adjustments > Updated: 2026-07-25T18:29:46.000Z. Sources: 7. Developments: 2. In mid‑July 2026 the Cyprus House of Representatives rejected a proposed sanitary landfill levy that would have charged €10 per tonne of municipal waste, rising annually to €70. The amendment was tied to the final tranche of EU Recovery and Resilience funds, and its defeat risked the loss of roughly €48 million for local authorities. The Ministry of Agriculture criticised the vote as undermining waste‑management modernization, while opposition parties argued the tax would unduly burden households without sufficient infrastructure. A week later the government signalled another fiscal shift, announcing plans to raise building‑permit fees across the island. Officials cited inflation, wage growth and a sharp increase in construction costs as justification for adjusting fees that had not changed since 2003. Proposals suggested residential permits could rise to €180–€400, with rates to be calibrated by development type and size. The revisions are set for parliamentary debate in September. Both episodes illustrate a broader pattern of Cyprus re‑evaluating domestic fees and taxes to address budgetary pressures and align with EU‑linked recovery objectives, while facing political resistance over the distribution of costs. ## Timeline ### 2026-07-25: Cyprus plans higher fees for building permits amid construction cost surge Cyprus will raise building‑permit fees, potentially up to €180 for homes, after a parliamentary debate in September, to reflect soaring construction costs. 2 sources. https://clstr.news/cluster/cyprus-plans-higher-fees-for-building-permits-amid-construction-cost-surge ### 2026-07-13: Cyprus parliament rejects waste tax, risking loss of €48 million EU funding Cyprus parliament rejected a waste‑tax amendment, costing the country up to €48 million in EU recovery funds and sparking criticism over waste‑management strategy. 6 sources. https://clstr.news/cluster/cyprus-creates-business-development-agency-and-introduces-municipal-waste-tax --- Cite as: Cyprus fiscal policy adjustments. CLSTR, https://clstr.news/situations/cyprus-fiscal-policy-adjustments