Cyprus to extend fuel tax reduction beyond September 17
The government plans to extend the current fuel excise-duty reduction for one or two months, subject to cabinet and parliamentary approval.
Nicosia, Cyprus. Finance Minister Makis Keravnos said the government will extend the fuel consumption tax reduction for another one or two months beyond its September 17 expiry date. The measure is expected to take effect on September 18, subject to approval by the cabinet and parliament.
Extension process
Keravnos said the extension would retain the current level of reduction and would be reassessed after one or two months to determine whether a further extension is needed.
The finance ministry said the bill had been approved by Keravnos and would be forwarded to the cabinet before being submitted to the House ahead of the current measure’s expiry.
Market uncertainty
The minister said developments in energy markets and the wider geopolitical situation remained uncertain, citing announcements and developments in the Middle East that could rapidly affect the outlook for fuel prices.
“The situation is changing daily,” Keravnos said.
Current tax reduction
The existing measure reduces excise duty on motor fuels by 8.33 cents per litre, including VAT.
Petrol excise duty has been reduced from €0.429 to €0.359 per litre, while diesel excise duty has fallen from €0.40 to €0.33 per litre.
Keravnos said Cyprus had reduced the tax to the maximum level permitted under EU rules. He added that Cyprus currently has the lowest petrol price in the EU apart from Bulgaria, attributing this partly to the government’s fuel taxation policy.
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