The government's fuel consumption tax reduction measure will finally begin to be implemented on April 4, and not today, as initially announced. The measure, which was presented to the Finance Committee on Thursday in an emergency form, is expected to be voted on in the Plenary on the same day and to be implemented from midnight on Saturday.
The measure concerns the reduction of the consumption tax by 8,33 cents per liter on gasoline and 6 cents per liter on diesel. The purpose, said the Head of the Tax Policy Unit of the Ministry of Finance, Nagia Symeonidou, is to address the rise in fuel prices due to the war in the Middle East.
As Ms. Symeonidou explained, the Eurogroup's recommendations are being followed, so that the measures are temporary and limited. Therefore, they will be in effect until the end of June, while the measure will be re-evaluated depending on developments.
The total cost of the measure is estimated at €18,6 million.
According to Ms. Symeonidou, the date of implementation of the measure is postponed from April 2 to April 4, so that, if it is voted on today and published in the Government Gazette on Friday, companies will be given time to adjust their prices.
Furthermore, he stated that the reduction of VAT on electricity to 5% for all household consumers was already published on Friday by decree, with an entry into force date of May 1, 2026 and valid until March 31, 2027.
In response to a question from the Chair of the Committee, DIKO MP, Christiana Erotokritou, about how it is ensured that the reduction in traffic fuels will be passed on directly and in its entirety to consumers, without any profiteering, Ms. Symeonidou said that the implementation of the measures is monitored by the Consumer Service.
Responding to whether in the past there have been complaints or even "punishment" of those who profited from prostitution, he said that the Ministry responsible for this is the Ministry of Commerce, but he will inform Parliament of any previous complaints.
Ms. Erotokritou pointed out that DIKO will call on the Ministry of Commerce to increase controls, with the cooperation of the public, as, as she said, those who profit from a measure that deprives the state of revenue, seeing an opportunity to get rich, are "doubly punishable".
AKEL MP Christos Christofides observed that profiteering is also the fact that when increases in fuel prices are observed internationally, they are "transferred using the rocket method", while in the case of reductions, companies claim that they have reserves.
DISY MP, Savia Orphanidou, asked whether the application of the zero VAT rate to specific products has been evaluated, highlighting the need for more targeted measures.
Ms. Symeonidou said that it appears that the reduction is being passed on to the consumer and prices are being monitored. She noted that the reason the measure was not made permanent but is being renewed is to assess whether the consumer is actually benefiting.
Source: KYPE
