In order to deal with the increase of of electricity costs, customers that fall into the category of a vulnerable group will only be charged a VAT of 5% for their electricty consumption for the next 6 months.  A substantial decrease from 19%.

According to the Minister of Energy, Trade and Industry Natasa Pilides, the move, along with the €5 million plan to provide subsidies for the replacement of high consumption energy appliances and the 10% reduction in electricity bills will give breathing space to vulnerable customers already hit hard by the cost of inflation.

However, Pilides added that, "the best way to reduce electricity costs is through the installation of photovoltaics and the transition to green energy".  She hoped that the move would be embraced by consumers.

Finance Minister Konstantinos Petridis stated "the Cypriot Government has proved that it is one of the first Governments that has taken drastic measures to help our fellow citizens in this inflationary wave we are in now".

The VAT reduction plan is part of the European Commission's 'Recovery and Resiliance' package and will need to be approved by the EC before implementation.  The plan is expected to be approved in the next few days.

Source: Knews