The Finance Ministry plans to extend the fuel tax cut of 8.33 cents per litre, which is currently due to expire on September 17, a ministry representative told the Parliamentary Energy Committee on Tuesday.
The representative was responding to a question from AKEL MP Andreas Pasiourtidis during the committee meeting.
“It is in our plans; the bill has been approved by the Minister,” she said, adding that it is expected to go before the Council of Ministers for approval and then be submitted to Parliament before September 17.
The aim is for the measure to be ready for implementation from September 18.
Subsidy expected to run until end of November
The bill being prepared by the Finance Ministry is expected to extend the fuel tax cut until the end of November.
The ministry representative also noted that EU rules set a limit on how much each member state can reduce excise duty on fuels.
Cyprus has reduced the excise duty to the maximum level permitted under the applicable rules, she said.
She added that excise duty accounts for more than 50% of the tax burden on fuel.
Also read: Fuel prices could near €2 as tax cut ends
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