Cyprus: VAT and excise duty relief measures for electricity, motor fuels, and food

To support households and businesses affected by price increases resulting from the conflict in the Middle East

The government announced the following value added tax (VAT) and excise duty relief measures to support households and businesses affected by price increases resulting from the conflict in the Middle East:

Further reduction of the VAT rate on electricity to 5% for all residential consumers, from May 1, 2026, until March 31, 2027
Reduction in excise duty on motor fuels for the months of April through June 2026 by 8.33 cents per liter
Zero VAT rate on meat, poultry, and fish from April 1, 2026, until September 30, 2026 (adding these products to those already subject to zero VAT, namely fruits and vegetables)
Decision not to impose the Green Tax on fuels, which would have increased fuel costs by an additional 9 cents per liter

Read a March 2026 report prepared by the KPMG member firm in Cyprus

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Cyprus: VAT and excise duty relief measures for electricity, motor fuels, and food

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