The tax on petrol is reduced by 7 cents a litre, by 8.3 cents a litre on diesel and by 6.4 cents a litre on heating fuel.

The bill was fast-tracked through parliament following a relevant decision taken by the cabinet last week.

Despite voting for the bill, opposition MPs voiced dissatisfaction with the government for not likewise reducing the tax on agricultural fuel. They also censured the government for not taking steps to curb the cost of electricity.

In remarks on the House floor, Akel MP Andreas Kafkalias said the state stands to forego some €6.5 million in tax revenue a month because of the lower fuel taxes, compared to what it would have got if normal tax rates applied. Nevertheless, this loss is more than offset by the fact that over the past several months the state has raked in approximately €850 million in windfall tax earnings on the back of high fuel prices.

Source: Cyprus Mail