Parliament to decide on fuel tax reduction
The fuel tax cut measure in Cyprus is expected to be approved today, as the Plenary of the House of Representatives of Cyprus convenes at 11:00 to vote on the urgent bill.
If passed, the reduction in excise duty on motor fuels will be published in the Official Gazette on the same day, allowing it to come into immediate effect.
Impact on fuel prices
The fuel tax cut in Cyprus is expected to lower the price of petrol and diesel by approximately 8.3 cents per litre, including VAT, offering limited relief to consumers.
Despite the reduction, prices are not expected to return to pre-war levels, following significant increases in recent weeks.
As of yesterday, the average price of 95-octane petrol stood at €1.585 per litre, compared to €1.318 on March 2. Diesel prices reached €1.854 per litre, up from €1.418 in early March.
Heating oil, which stood at €1.329 per litre compared to €0.950 earlier in March, is not included in the measure, prompting calls from consumer groups for its inclusion.
The tax reduction is expected to remain in force until the end of June.
Zero VAT on meat and fish
Additional relief measures will come into effect on April 6, with zero VAT applied to meat and fish.
According to the Tax Department of Cyprus, the measure will remain in place until September 30, 2026, covering fresh, chilled or frozen meat and fish products, including beef, pork, poultry, lamb, goat, and seafood such as squid and octopus.
Processed products, such as sausages, burgers, cured meats and canned or smoked fish, will continue to be subject to a reduced VAT rate of 5%.
Additional government measures
Further measures are also planned to support households. From May 1, 2026, to March 31, 2027, VAT on electricity for residential consumers will be reduced to 5%.
In addition, a subsidy scheme covering 30% of wages in the hotel industry is already in effect for April, targeting businesses that remain open throughout the month.
Farmers will also benefit from a subsidy covering 15% of fertiliser costs during April and May.
The government has indicated it is closely monitoring developments and may introduce additional support measures or extend existing ones if necessary.
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