Cabinet approves VAT cut on electricity bills

The cabinet on Monday approved cuts in VAT on household power bills as part of its policy to tackle the fallout from the rise in the price of electricity.

According to deputy government spokesperson Niovi Parisinou, the cabinet approved a decree cutting VAT for vulnerable groups (tariffs 08 and 56) from 19 per cent to 5 per cent for six months. The reduced rate applies to bills from November 1.

The decree also cuts VAT for household tariffs 01, 02, and 56, from 19 per cent to 9 per cent for three months starting November 1.

The decree will come into effect as soon as it is published in the government gazette.