EU greenlights VAT cuts on electricity bills

The European Commission’s VAT committee has approved the government’s proposal to cut VAT on household electricity bills, the finance ministry announced on Monday.

A statement said that the measure was approved by the VAT committee on Monday and is considered effective from November 1.

Vulnerable households will see VAT on their electricity bills fall from 19 to 5 per cent for the next six months, while for the rest it will fall to 9 per cent for the next three months.

Earlier this month, Finance Minister Constantinos Petrides said that the government had notified the EU of its intention, saying it was in line with the European Commission’s toolbox and recommendations to tackle the rise in energy prices and prevent energy poverty.