Cyprus VAT measures under review
A clearer picture is expected to emerge this week regarding the Cypriot government’s course of action on the reduced value-added tax (VAT) rate on fuel and electricity, government spokesman Konstantinos Letymbiotis told Kathimerini Cyprus.
He explained that the rationale behind ending the reduced VAT rate, at least for motor fuels, is that their prices have gone down. With the finance minister’s return from the Eurogroup and Ecofin meetings in Luxembourg and his talks with Cypriot President Nikos Christodoulides, final decisions are expected soon. The measure is set to expire on June 30.
Letymbiotis further mentioned that within the framework of the government’s efforts to support households, other measures have been introduced to alleviate the pressure of rising prices, such as zero VAT rates and reduced VAT rates on specific products. These measures are intended to be more targeted and effective at this stage.
It has been estimated that implementing the reduced or zero VAT rates on essential items such as bread, milk, eggs, baby food, nappies, sanitary protection products and adult diapers would cost 11 million euros.
