Cyprus has extended reduced VAT on household electricity until 31 March 2027 after the government found supply prices have not fallen from last year’s levels.
The Cabinet approved the extension during its meeting on Wednesday, Finance Minister Makis Keravnos said in a statement after the session.
The current reduced VAT regime on electricity was due to expire on 31 March 2026, Keravnos said.
Because electricity supply prices have not decreased compared to the same period last year, the government decided to continue applying the reduced VAT rate until 31 March 2027, he said.
The measure will cost €40 million and forms part of the government’s evaluation of measures to tackle high energy prices and ongoing efforts to increase household disposable income, Keravnos said.
(information from CNA)