Cyprus to lower heating oil tax starting October 23

The Cypriot government is set to implement a significant reduction in the excise duty on heating oil, bringing the rate down from 7.5 cents to 2.1 cents per litre. Following a review by the House Finance Committee on October 19, the bill is scheduled for approval by the parliamentary plenary on October 22. If passed, the measure will take effect at 12:01 am on Friday, October 23, effectively moving up the implementation date by nine days from the originally planned November 1 start.

This policy change will result in a total tax relief of approximately 6.39 cents per litre when VAT is included. Chrysis Pantelides, deputy chairman of the House Finance Committee, confirmed that both the committee and the Minister of Finance agreed on this accelerated timeline to provide immediate support to households as winter approaches.

Beyond this immediate tax cut, the Republic of Cyprus has initiated formal procedures with the European Commission to request a complete zero-tax status for heating oil. Authorities are currently providing the necessary documentation to seek a derogation from EU minimum tax thresholds. The Finance Ministry expects further clarification on this long-term request in the coming months.