The European Commission has confirmed that the reduction in VAT on fuel is contrary to European law. Spain and Poland, which have announced such plans, have already received warnings. Cyprus used an authorized tool – a reduction in excise duty. 📜 ⚠️

What has Cyprus done?

From April 1 to the end of June, the fuel consumption tax is reduced by 8.33 cents per liter. In addition, the government refused to introduce “green taxes,” which would add another 9 cents to the price. ⛽ 📉

In the north of the island – otherwise

In the occupied territories, where EU legislation does not apply, fuel VAT has been completely reset, and port fees, customs duties and other taxes have been canceled. 🚛💨

Prices will not return to normal even after the war

The European Commissioner for Energy warned: the conflict will not end with a rapid decline in prices. Since the beginning of the escalation, gas in the EU has risen in price by 70%, oil – by 60%. Fossil fuel import costs increased by €14 billion 📈💸

What is the EU preparing?

Support Package:

🔹 Decoupling electricity prices from gas prices

🔹 Electricity tax cuts

🔹 Possible tax on excess profits of power companies

📌 Countries are also recommended to stimulate remote work, reduce speed limits and develop public transport.

@cyprus_kipr