Extension of the term of the reduced VAT rates on electricty, lower excise duties on fuel and heating oil

• Excise duties on petrol and oil will be reduced by 7 cents per litre, dropping to 8.3 cents per litre (VAT included), and the tax on heating oil will be reduced by 6.4 cents per litre (VAT included)
• Reduced VAT rates on electricity consumption, from 19% to 5% for vulnerable consumers – extended until 30 June 2022
• Reduced VAT rates from 19% to 9% for all other households – extended until 30 April 2022

The cabinet decided to reduce fuel tax by the maximum levels allowed by the European acquis – 5% – and extend the period during which the 9% VAT cut on power consumption will apply, said Petrides. In doing so, the finance minister said, Cyprus will become the EU member-state with the lowest tax rates.

Sources:

• ekathimerini.com
• philenews.com

---

---