The Cyprus government will continue to offer lower taxes on electricity bills. The Council of Ministers officially approved this decision. This policy will now last until March 31, 2027. It was planned to end on March 31, 2026. This extension gives people one more year of help.
High energy prices are still a big problem for families. The reduced tax was put in place to help. However, electricity costs have not gone down as much as hoped. Finance Minister Makis Keravnos said electricity prices are still high. Therefore, the government decided to keep the lower tax.
The reduced tax was first a temporary plan. It was meant to help with rising energy costs. Now, it is an important way to support many families. Lowering the tax on electricity helps people save money. It also makes their finances more stable.
This decision will cost the government about €40 million. This money will pay for the lower tax for a longer time. The government is using public money to help people with high energy bills. This is a plan to make energy more affordable.
People in Cyprus will see lower VAT charges on their electricity. This will help them save money directly. Many families are facing higher costs for many things. The government wants to protect people from economic problems. This extension shows they care about citizens.
This is a smart economic decision. It helps people during difficult times with energy prices. The government knows that economic problems may continue. Therefore, they will keep offering help. This policy helps Cyprus build a stronger economy. It also protects the financial health of its people.