The reduced excise tax on heating oil will take effect earlier than planned, following a request by the chair of the Finance Committee to the minister to expedite the measure.
On September 30, when the minister announced the measures, the average price of heating oil was 1.65.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
Three days later, the price rose to €1.663. And today it stands at 1.679.
The measure is expected to be brought before the Plenary on October 22 and implemented immediately thereafter.
Of course, while the issue could have been brought before the Plenary as early as this Thursday—since the lawmakers themselves are constantly voicing concerns about the pressures consumers are facing— the chamber will not convene tomorrow, on the grounds that there are no items on the agenda.
“Any measure is welcome, but it must be targeted. This is especially true for social policies, particularly those aimed at vulnerable population groups, so that they can be effective. We must not let life become unbearable for thousands of our fellow citizens.” Nikos Georgiou, Chair of the Energy Committee / DISY Member of Parliament
“Yesterday, the Ministry of Finance acknowledged that it is not easy to confirm whether these relief measures are reaching consumers. And we ask consumers: have they felt any difference in their household budgets?” Konstantinos Konstantinou, AKEL Member of Parliament
“Either electricity should be classified as a basic necessity—and therefore the VAT rate should be lowered—or the rate should be kept low permanently, not just whenever the government sees fit.” Yiannis Laouris, Member of Parliament for Direct Democracy
As we have been informed, the Ministry of Finance has not set any deadline for the early implementation of this measure; therefore, members of parliament could put it into effect as early as tomorrow.
At the leadership level
Following Ecofin’s rejection of the request for an exemption from the measures due to the energy crisis, the issue is now being brought before the heads of state and government. However, Cyprus’s request appears to be limited solely to heating oil.
“Heating oil is subject to 7.4 cents per liter in excise taxes. They’ve reduced it by 5 cents, leaving only 2.4 cents. It remains to be reduced to zero. We are requesting an exemption to waive the 2.4 cents, and we are not requesting an exemption for gasoline, where 35 cents remain, or for diesel fuel, where 33 cents remain.” Marios Drousiotis, President of the Cyprus Consumers’ Association
As for the five products added to the list—some of which are subject to a zero VAT rate—the tax has not yet been reduced to zero.
See the report by Kleio Vourkou
