**Parliament Backs Fuel Tax Relief Extension Until End of August**
In a decisive move to support drivers and mitigate the impact of fuel prices, the House of Representatives in Cyprus has unanimously approved a two-month extension of reduced fuel excise duties. The amendment, which passed with 38 votes in favor under an emergency procedure, will extend the reduced rates until August 31, 2023. This extension comes as the previous measure was set to expire at the end of this month.
The legislation maintains the existing reductions of 8.33 cents per liter on petrol and six cents per liter on diesel. The Cypriot government estimates that this extension will cost approximately €12 million. Government spokesman Konstantinos Letymbiotis indicated that the decision was made in light of ongoing geopolitical developments that have kept energy prices above normal levels, despite being lower than their previous peaks.
The proposal for the extension was discussed in an extraordinary session of the House finance committee before being presented to the plenary for a final vote. This legislative action follows cabinet approval earlier in the week, emphasizing the government's commitment to addressing the financial pressures faced by households and businesses due to rising transport costs.
Fuel prices have become a politically sensitive issue in Cyprus, affecting various sectors of the economy, including household expenses and supply chains. The government's decision to extend the reduced fuel duties is part of a broader package of cost-of-living measures that were initially introduced in March. This package also included a temporary zero rate of VAT on meat, poultry, and fish, as well as the postponement of planned environmental levies on fuel.
While the extension of the fuel excise duty reductions has been welcomed, previous discussions in Parliament have revealed calls from some deputies for a reduction in VAT on fuel. However, current EU regulations do not allow for such a measure under existing legislation, limiting the government's options in addressing fuel costs further.
The unanimous support in the House reflects a shared understanding of the challenges posed by elevated fuel prices, as well as a commitment to providing relief to citizens. As the extension takes effect, drivers in Cyprus can expect to benefit from the continued reduced rates, easing some of the financial burdens associated with fuel expenses.
As the situation evolves, it remains to be seen how long the government will be able to maintain these reductions and whether further measures will be considered to address the ongoing challenges related to fuel pricing and energy costs.