InsiderEconomyProtests about duration of VAT reductions on electricity bills

Protests about duration of VAT reductions on electricity bills

The opposition may finally anticipate the government regarding the reduction of VAT on electricity bills. The reason is that at next Friday’s Plenum a draft bill by AKEL, DIKO, EDEK and the Ecologists for overall reduction of VAT on electricity bills from 19% to 9% without time limits, will be put to vote. So far it seems that the draft bill has majority approval since it so far has the support of at least 31 lawmakers. Deputies of ruling DISY party are against this proposal.

The technocrats of the Finance Ministry, on the other hand are preparing a bill to reduce VAT to 9% only for households for three months and to 5% for vulnerable consumers for six months. This bill is being prepared after approval by the relevant EU Committee.

In case the proposal of the opposition is approved, most probably the President of the Republic will send the law back to Parliament, which in its turn will insist and the legislation will end up in the Supreme Court.

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