Europe

Fuel price cap, VAT freeze

Parliament on Thursday voted through a bill that would allow the government to order price caps for petroleum products, and passed a bill to eliminate VAT on fuel and electricity bills by the end of the year. ..

A price cap bill submitted by its main opponent, Akel, allows the Minister of Energy and Commerce to issue legislation that specifies the maximum retail and wholesale prices for petroleum products. Domestic and international situation. “

The new law also gives the Minister the discretion to set a threshold for the maximum gross profit of companies trading these products.

Ministers can intervene in the market whenever the global economic situation is disrupted and is affecting the supply chain of certain products or raw materials.

In addition, the House of Representatives has passed a government bill that allows the Ministry of Commerce to cap prices on important items such as bread, water, Cyprus coffee, wheat and corn.

Also on Thursday, MPs voted through two legislation aimed at providing relief to consumers in the current inflation spiral.

One of the bills does not impose VAT on fuel products until the end of the year. On the other hand, the VAT on electricity prices will be reduced to zero as well.

Earlier this week, the state power company confirmed that the next electricity bill would be about 25 percent higher than the previous batch.

The Cyprus Department of Electricity said the cost of fuel currently purchased for power generation has doubled since a year ago.

 

https://cyprus-mail.com/2022/07/14/cap-on-fuel-prices-freeze-on-vat/ Fuel price cap, VAT freeze

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