Temporary VAT and Excise Duty Relief Measures (Energy Cost Support)

In 2026, Cyprus introduced temporary fiscal measures to reduce energy costs for households and businesses, including a reduction of VAT on electricity to 5% from May 2026 to March 2027 and an excise duty cut of 8.33 cents per litre on motor fuels (April-June 2026). The measures were adopted by the government in response to rising energy prices linked to geopolitical tensions and aim to alleviate cost pressures across the economy. 

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