FinMin announces Government’s intention to cut VAT on household electricity bills

Finance Minister Constantinos Petrides said on Thursday that the Government has notified the EU’s VAT Committee over its intention to reduce VAT on household electricity bills from 19% to 9% for a three-month period and called on Parliamentary parties to avoid proposing bills that could hugely affect public finances.

The move follows a recent Cabinet decision to reduce VAT on electricity bills of vulnerable households from 19% to 5% for six months and a reduction of 10% in place until February 2022, announced by the Electricity Authority of Cyprus, in September.

“In response to the Parliament’s call and after examining the fluctuation of prices, we announced yesterday to the EU VAT Committee our intention to reduce for a period of three months the VAT (on electricity consumption) for households from 19% to 9%”, Petrides told a press conference held jointly

Source: Cyprus News Agency