Cyprus cuts excise duty on heating oil effective October 23

The Cypriot government is set to implement a significant reduction in the excise duty on heating oil, lowering it from 7.5 cents to 2.1 cents per litre. The House Finance Committee reviewed the legislative proposal on October 19 and scheduled a plenary vote for Thursday, October 22. If approved as expected, the new rate will take effect at 12:01 a.m. on Friday, October 23, nine days earlier than the initially planned start date of November 1.

This decision, supported by both the parliamentary committee and the Ministry of Finance, reflects a desire to alleviate heating costs for citizens well before the peak of winter. While 2.1 cents represents the current minimum tax threshold allowed under European Union regulations, Cypriot authorities have formally requested an exemption from Brussels that could eventually allow for a zero excise tax. A representative from the Ministry of Finance confirmed that this request for a full waiver is currently being processed, with further clarity expected in the coming months.

According to Christos Pantelides, deputy chairman of the Finance Committee, the measure will reduce the tax burden by 5.37 cents per litre, or approximately 6.39 cents including VAT. The government hopes this proactive approach will provide relief to households as the colder weather approaches.