Akel bill for further cuts, VAT being discussed by MPs next week

A bill tabled by main opposition Akel suggesting further cuts to VAT on electricity bills will be discussed at the next House finance committee after gaining support from the majority of the opposition parties.

Akel’s initiative calls for VAT on electricity bills to be cut from 19 per cent to 9 per cent across-the-board to keep the prices of other goods stable.

“This suggested adjustment is necessary to combat the effects of the sharp rise in prices and in particular aims to help consumers, households and businesses cope with the increase in electricity costs,” Akel leader Stephanos Stephanou said in his supporting statement.

Stephanou also said that this measure does not go over the limit set by the EU for combatting rising power costs.

The bill has been added to the House finance committee’s agenda for the coming Monday after gaining support from Diko, Edek and the Green Party.

Dipa and Elam have not made their stance public yet but if forwarded to parliament the bill is guaranteed to get 31 votes from the four parties.

Cabinet last week decided to cut VAT to 5 per cent for vulnerable groups for six months to help with the soaring electricity prices.

This followed another decision to offer a 10 per cent discount on the electricity bills of all households for four months.