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 at the maximum levels allowed by the European acquis and extend the period of implementing a reduced VAT by 5% and 9% in power consumption”, said Petrides.
Petrol and oil tax will be reduced by 7 cents per litre, reaching 8.3 cents per litre (VAT included) and the heating oil tax will be reduced by 6.4 cents per litre (VAT included), he added.
This way, Cyprus becomes the EU member state with the lowest tax rates, said the Finance Minister, adding that these decisions require a vote at the House of Representatives later today.
Furthermore, Petrides stated that the fiscal cost of these proposals approved by the Cabinet are estimated at an additional 40 million euros while there are other energy saving programmes available, for households and vulnerable groups of the population, worth 150 mln euros.
The government has proven that we will readjust our policies whenever this is possible in order to help society, as well as the economy, the Minister concluded.