Cyprus government proposes tax reduction on heating fuels

The Cyprus government has submitted an urgent bill to the House of Representatives to reduce excise taxes on heating fuels. The legislation aims to mitigate the impact of geopolitical instability in the Middle East and energy price volatility, ensuring that household heating costs remain manageable throughout the upcoming winter season.

The proposed measure, titled "The Excise Tax (Amending) (No. 4) Law of 2026," focuses on fuel classes 7, 9, 11, and 13, which include gas oil, kerosene, liquefied petroleum gas, and fuel oil. According to the Ministry of Finance, the bill seeks to maintain tax rates at the minimum levels permitted by European Union regulations for the period from November 1, 2026, to April 30, 2027. This initiative follows an authorization granted by the Council of Ministers on September 30, 2026, which empowered the Minister of Finance to facilitate the bill's urgent passage through parliament.

The draft law is currently awaiting parliamentary review and approval. The government intends for these fiscal adjustments to provide an immediate shield for consumers against rising energy costs as temperatures drop.