Fuel tax to be reduced in Cyprus starting April 4
The Government of the Republic of Cyprus will introduce a temporary reduction in the excise tax on fuel starting April 4.
The relevant bill was presented to the parliamentary Finance Committee and is expected to be approved during the plenary session.
According to the initiative, the excise duty on gasoline will be reduced by 8.33 cents per liter, and on diesel fuel by 6 cents per liter. As explained by Nayia Symeonidou, head of the tax policy unit of the Ministry of Finance, the measure is aimed at mitigating the rise in fuel prices amid the military conflict in the Middle East.
The reduction is expected to be temporary — until the end of June, after which its effectiveness will be re-evaluated. The total cost of the measure for the budget is estimated at approximately 18.6 million euros.
It is also reported that a decision was previously published to reduce VAT on electricity to 5% for all households. This measure will take effect on May 1, 2026, and will be valid until March 31, 2027.
The Consumer Protection Service will ensure that the tax reduction is actually reflected in consumer prices.
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