Cyprus extends fuel tax relief

The Cyprus government on Friday extended excise tax cuts on fuel until 15 January 2023. Cyprus’ Finance Minister has called on households and businesses to conserve energy, as this is to mitigate the effects of the rapid inflation caused by the war in Ukraine. Fiscal policy alone cannot solve all inflation problems.

Cyprus’ Council of Ministers, at an extraordinary meeting chaired by acting parliamentary speaker Anita Demetriou, approved a bill extending the fuel tax cut until mid-January. The bill provides excise tax relief of 7 cents on unleaded 95, 8.2 cents on diesel and 6.4 cents on kerosene.

In a statement to the Cyprus News Agency, Minister Konstantinos Petrides said the estimated financial costs were around 6.5 million euros and the total cost of excise tax cuts was estimated at around 35 million euros so far. rice field.

“Cyprus continues to have the lowest excise tax rate on fuel in the EU,” said Petrides, noting that Cyprus’ excise tax rate is the lowest allowed by EU regulations.

He also noted that despite government action, fuel prices have fallen 19% for unleaded 95 and 8% for diesel and kerosene since their July peak, according to the latest available data.

In addition, Petrides recalled that electricity prices are being subsidized by a third government plan, which runs until the end of the year. He said the first plan was aimed at reducing electricity tariffs by the Cyprus Electricity Authority, the second plan featured a temporary reduction in the VAT rate on electricity tariffs, and the third plan aimed at reductions. It added that it is offering subsidies from the government. Covers the impact of the recovery of VAT rates and the increase in electricity bills due to his EAC due to rising oil prices.

“Government measures aimed at supporting businesses and households amount to more than 400 million euros,” the Finance Minister noted.

But Petrides has urged both homes and businesses to save energy in line with EU directives.

“These measures will alleviate the problem, but they won’t completely solve the problem of inflation,” he stressed, adding that households and businesses should receive government subsidies for solar installation and energy efficiency. I urge you to use the money system. Cyprus extends fuel tax relief

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