TAXATION

Cyprus cuts consumption tax on fuel

Cyprus cuts consumption tax on fuel

Cyprus Finance Minister Constantinos Petrides announced on Thursday a reduction in fuel tax following a cabinet meeting at the Presidential Palace.

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.

The tax on petrol and oil will be reduced by 7 euro cents per liter, dropping to 8.3 cents per liter (value-added tax included), and that on heating oil will be cut by 6.4 cents per liter (VAT included), he added.

In doing so, the finance minister said, Cyprus will become the EU member-state with the lowest tax rates.

Furthermore, Petrides stated that the fiscal cost of these proposals approved by the cabinet is estimated at an additional 40 million euros, while there are other energy-saving programs available for households and vulnerable groups of the population worth €150 million.

the minister concluded that the government has proven that it will readjust its policies whenever possible in order to help society, as well as the economy.