The President of the Cyprus Consumers' Association, Marios Drousiotis, expresses satisfaction with reservations about the measures announced on Thursday by the President of the Republic, stating that the main pending issue is the clear clarification of whether heating oil is included in the reduction in consumption tax.
In statements to CNA, Mr. Drousiotis stated that the President's reference was to motor fuels, noting that heating oil does not fall into this category.
"Our position is that in principle we are satisfied, but we need some clarifications," he said, noting that it remains unclear whether heating oil is included in the consumption tax reduction.
"We are wondering, is heating oil excluded from the reduction or was it simply not included in the President's speech," he added, emphasizing that if it is not included "it should be," as in previous subsidies. He added that so far no official or unofficial answer has been given.
The President of the Association pointed out that the issue is critical, as there is consumption of heating oil throughout the year, even in the summer months, due to its use for heating water in apartment buildings and residences without alternative solutions.
At the same time, Mr. Drousiotis also requested clarification on the application of a zero VAT rate on fish, meat and chicken, raising the question of whether the measure also covers preparations, such as frozen products, canned goods and cold cuts.
Regarding the duration of the measure's implementation, he noted that unlike previous interventions, this time a time limit of three months is set, until June, expressing the hope that it will be extended if conditions do not change significantly.
In relation to public revenues, he stated that the state currently collects approximately 5 cents more per liter of fuel compared to March 1, due to VAT.
Regarding the reduction of VAT on electricity to 5% for household consumers from May 1, 2026 to March 31, 2027, Mr. Drousiotis estimated that an average household would save approximately 6 euros per month or 12 euros per two months at current prices, noting, however, that this benefit may be absorbed by possible price increases in the near future.
Source: KYPE
