Cyprus Mail 13 March 2025 - by Iole Damaskinos
President Nikos Christodoulides announced the reduction of VAT for home electricity consumption during his televised address to the nation overnight.
During a review of what had been achieved during his two years in office on Wednesday, in the context of discussing his administration’s energy and taxation policy, Christodoulides said the decision had been taken to reduce VAT on domestic electricity from 19 per cent to nine per cent.
“In the framework of the policy for cheaper energy and the broader reduction of taxes, as it also appears in our proposal for tax reform, I announce tonight the government’s decision to reduce VAT on electricity use for residential consumption from 19 per cent to nine per cent,” he said.
The decision is expected to take effect on April 1 and remain in place for a year.
The president went on to mention targeted actions the state had taken towards the utilisation of natural gas in the country’s EEZ (exclusive economic zone) with the signing of two important agreements with Egypt for commercialization of LNG.
He also said the results of drilling surveys conducted were expected “imminently within the next several days”.
Akel General Secretary Stefanos Stefanou in response to the announcement expressed his satisfaction that the president had adopted his party’s proposal, but cautioned that other issues, such as the expected so-called green taxation, remained “an open front”.
