Cyprus finance minister seeks EU approval to reform how VAT on electricity is calculated

Cyprus Finance Minister Keravnos has initiated proceedings to seek European Commission approval to change how VAT on electricity is collected and calculated, saying the current method amounts to double taxation. He is seeking an EU exemption on the grounds that Cyprus’s public finances are performing well and its debt is falling, and is also seeking to reduce the excise duty on heating oil to below 2.1 cents per liter. The government has also introduced a package of support measures with an additional cost of €70 million, bringing the total cost, including measures already in effect, to about €160 million.