Plans to Reduce VAT and Fuel Tax in Cyprus
October 8, 2026
The Cypriot Finance Minister, Makis Keravnos, is in Luxembourg to participate in the Eurogroup and ECOFIN meetings. He aims to change the calculation of VAT on electricity bills, proposing to reduce it to 5%. Concurrently, the Cypriot government plans to lower the special consumption tax on heating oil. The goal is to relieve households from the rising energy prices. These measures require the approval of the European Commission.