Cyprus parliament cuts heating oil tax

The Cyprus House of Representatives unanimously approved a government bill on Thursday to reduce the excise duty on heating oil. The measure provides for a reduction of 6.39 cents per liter, including VAT, or 5.373 cents excluding VAT. The policy will take effect from midnight on October 23, having been fast-tracked from the initial proposal of November 1.

The tax relief applies to fuel products under classes 7, 9, 11, and 13 of the First Schedule of the Excise Duty Law and will remain in force until April 30, 2027. The estimated fiscal cost to the state is approximately 5.2 million euros. The decision was prompted by prolonged geopolitical uncertainty in the Middle East and rising international fuel prices, which have placed significant financial pressure on households and businesses ahead of the winter season.

Finance Minister Makis Keravnos has officially requested a derogation from European authorities in Brussels, seeking permission to eliminate the tax on heating oil entirely. While the current reduction is set, the government continues to weigh further measures to combat the rising cost of living.