In his televised address to the nation this evening, President Nikos Christodoulides announced the reduction of VAT on electricity consumption by private households.

Taking stock of his two years in office on Wednesday , Christodoulides said during the discussion on his government's energy and tax policy that the decision had been made to reduce the VAT on electricity for private households from 19 to 9 percent .

"As part of the policy for cheaper energy and a more comprehensive reduction in taxes, as also reflected in our tax reform proposal, I am announcing this evening the government's decision to reduce the VAT on electricity consumption for domestic use from 19 percent to nine percent," he said.

The decision is expected to come into force on April 1 and remain valid for one year.

The President also mentioned targeted measures taken by the state to exploit natural gas in the country's EEZ (exclusive economic zone) through the signing of two important agreements with Egypt for the commercialization of liquefied natural gas.

He also said that the results of the drilling carried out were expected “shortly within the next few days”.

In response to the announcement, Akel Secretary General Stefanos Stefanou expressed his satisfaction that the president had accepted his party's proposal. However, he warned that other issues, such as the expected so-called eco-tax, remain "open for discussion."

Source: CyprusMail.com

Author: Iole Damaskinos