Cyprus government evaluates fuel tax cuts and reviews cost-of-living support measures

Cypriot Finance Minister Makis Keravnos announced that the government has allocated over €1 billion since 2023 to mitigate the rising cost of living through five separate support packages. Addressing inflation driven by the ongoing global energy crisis, the minister emphasized that responsible fiscal management, fiscal surpluses, and debt reduction have enabled these targeted social interventions. A new tax reform, effective since January, has already benefited approximately 200,000 citizens.

Looking ahead, the government is focusing on extending tax relief measures. Keravnos confirmed that a proposal to renew reduced fuel tax rates will be submitted to the Council of Ministers, with a potential extension until March 2027. The current fuel tax reduction is set to expire at the end of November. Furthermore, the government is awaiting a response from the European Commission regarding a request to further reduce excise duties on heating oil, with the minister indicating a positive outlook for approval. The administration continues to monitor inflationary pressures to determine if additional support for businesses and households is necessary.