NewsLocalUkrainian crisis most probably will extend reduced VAT electricity rate

Ukrainian crisis most probably will extend reduced VAT electricity rate

The island’s reduced VAT rate of 9% in relation to the supply of domestic use electricity will most probably be extended beyond the end of March because of the Ukrainian crisis.

This is what Philenews reported on Tuesday, adding that insiders said the extension should be considered a given.

The reduced VAT rate was applicable from November 2021 and ending in March 2022.

At the same time, the record high international crude oil prices which affect those of liquid fuels imported by Cyprus do not exclude an adjustment of the VAT rate and fuel prices. Because the possibility of reducing the excise tax due to European commitments is remote.

Views on these issues are among those to be exchanged on Friday at a set meeting of the Advisory Finance Committee called by Minister of Finance Constantinos Petrides.

The Advisory Committee has not been meeting for years but now seems to be the time to reconvene. Taking part are also social partners – unions and employers organisations.

 

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