Cyprus President Announces VAT Reduction on Electricity

Cypriot President Nicos Christodoulides addressed the nation last evening. In his televised speech, he announced a reduction in VAT on household electricity consumption.

The address was part of a review of the achievements of his administration over the past two years. During his remarks on energy and tax policies, Christodoulides revealed that the government had decided to lower VAT on domestic electricity from 19% to 9%.

“As part of our ongoing efforts to provide more affordable energy and reduce taxes more broadly, as reflected in our tax reform proposal, I am announcing that the government will lower VAT on electricity used for domestic consumption from 19% to 9%,” said the President.

This change is set to take effect on April 1 and will remain in place for one year.

The President also highlighted the government's strategic steps in utilizing natural gas from the country's Exclusive Economic Zone (EEZ). He mentioned that two important agreements had been signed with Egypt regarding the commercialization of liquefied natural gas (LNG).

He further shared that the results of recent drilling explorations are expected “within the next few days.”