Τhe Plenary Session of the House of Representatives approved, under the urgent procedure, with a unanimous vote of 46 in favour legislation reducing the excise tax rate on motor fuels, with the aim of relieving consumers of the increased costs due to the consequences of the conflict in Iran.
The measure provides for a reduction in the excise tax until the end of June, with the total fiscal cost amounting to €18.6 million; upon the measure’s expiration, the possibility of extending it will be reconsidered.
During the debate, DIKO MP, chairperson of the parliamentary committee on financial affairs, Christiana Erotokritou noted that this is a significant government intervention to reduce fuel prices, while also highlighting the risk that unscrupulous individuals might exploit the measure.
EDEK MP Marinos Sizopoulos called on the government to also consider reducing VAT on fuel, particularly in light of unfair competition from the occupied territories, noting that fuel management there is handled by the occupying army.
ELAM MP Sotiris Ioannou pointed out that 40%-50% of the price of fuel consists of taxes, arguing that reducing it could curb illegal trade from the occupied areas and reduce the state’s revenue losses, as well as the costs associated with pollution.
On behalf of AKEL, MP Christos Christofides reiterated the party’s position on abolishing “double taxation” on fuel, noting that high taxation places a particularly heavy burden on Cyprus due to its reliance on private cars, while his colleague Andreas Kafkalias stressed the need to address profiteering, accusing the government for delays.
DISY MP Onoufrios Koulla called on the relevant authorities to conduct strict inspections to prevent profiteering, emphasizing the need for seriousness and responsibility in managing such measures.
AKEL MP Costas Costa expressed opposition to the reduction in excise tax, arguing that the delay in passing the measure had already resulted in the market absorbing the reduction.
CNA/THN/KA/EPH/2026
ENDS, CYPRUS NEWS AGENCY
