The reduction of VAT from 19% to 9% for home users was formalized yesterday from November 1 and for three months, however consumers will see the reduction in the EAC bills they will receive in the new year. The relevant decree of the Council of Ministers, for a three-month reduction of VAT on electricity for household users and for a six-month reduction to 5% for vulnerable consumers was published yesterday in the official newspaper of the Republic. This implements the decision of the government that was announced last week, with a decision of the Council of Ministers, with which in fact the government rejected what was approved by a majority of the Parliament on the issue.
We remind you that the opposition approved a bill for a universal reduction of the VAT rate from 19% to 9% for all users, households and businesses, without an expiration date, arguing that the indefinite reduction is allowed by the relevant framework. approved by the EU.
In response to what was approved, the government proposed a targeted reduction of VAT with an expiration date, which was implemented with yesterday's decree. Regarding the bill voted by the Parliament, the government representative Marios Pelekanos confirmed yesterday to "F" that this was returned, with the opposition law being returned to the Parliament, which has also given the Constitution a 15-day period to decide whether he will accept the referral.
Regardless of the developments for the fate of the Parliament proposal, the consumers, at least the home users, are expected to be relieved anyway based on what was published yesterday in the official newspaper of the Republic. According to the decree, from November 1, 2021 to January 31, 2022, the VAT rate for the supply of electricity that falls under the household pricing 01 and 02 and 56 (storage of thermal energy for domestic use-heat accumulators) is reduced from 19% to 9%. Furthermore, the VAT rate for the supply of electricity falling under the household price for vulnerable consumers 08 and 56 (storage of thermal energy for domestic use) for vulnerable groups of the population defined in the relevant decree is reduced from 1 November to 30 April from 19% to 5%. XNUMX%.
However, as the EAC spokeswoman Christina Papadopoulou told "F", the reduction in electricity bills as a result of the VAT reduction decided will be seen in the bills that will be issued from January 1, 2022 and will concern consumption from November 1. , as it will be recorded by the Authority's crews.
She reminded that from November 1, the EAC is already implementing a reduction in the price of electricity, of about 10%, for all users, residential and commercial, which will last for four months, until the end of February.
They will benefit from a 5% VAT reduction for six months
With the six-month reduction of VAT to 5% in terms of electricity supply under yesterday's decree, the following vulnerable categories will benefit, provided that they are registered in the specific categories:
- Large or five-member families receiving Child Allowance from the Welfare Allowance Management Service of the Ministry of Labor, Welfare and Social Insurance for three dependent children and over and with an annual gross family income of up to € 51.258. The income criterion of € 51.258 for the annual gross family income increases gradually by € 5.126 for each additional child over four.
- Public Aid recipients from the Social Welfare Services of the Ministry of Labor, Welfare and Social Insurance.
- Beneficiaries of Minimum Guaranteed Income provided by the Welfare Benefits Management Service of the Ministry of Labor, Welfare and Social Insurance.
- Recipients of a Heavy Motor Disability allowance from the Department of Social Integration of Persons with Disabilities of the Ministry of Labor, Welfare and Social Insurance.
- Recipients of Care Allowance for Quadriplegic Persons from the Department of Social Integration of Persons with Disabilities of the Ministry of Labor, Welfare and Social Insurance.
- Care recipients of Paraplegic Persons from the Department of Social Integration of Persons with Disabilities of the Ministry of Labor, Welfare and Social Insurance.
- Bloodthirsty kidney patients who receive a Distribution Allowance from the Department of Social Integration of Persons with Disabilities of the Ministry of Labor, Welfare and Social Insurance.
- People with multiple sclerosis (multiple sclerosis) who are registered members of the Pancyprian Multiple Sclerosis Association.
Spain: For a year reduced taxes on electricity
On the same day that the decree on the reduction of VAT on electricity for three months (for households) and for six months (for vulnerable consumers) was published in Cyprus, Spain announced that the reductions in VAT and other taxes related to energy will be extended until May 2022, thus completing a year of reduced taxation, as compensation for large increases in electricity prices.
Government spokeswoman Isabel Rodriguez said tax cuts would not return to baseline levels in late December, as originally decided, but would be extended until May, as electricity prices remained high. The burden on public finances from the extension of low taxation is estimated at around two billion euros.
Based on this decision, the VAT on energy bills will remain at 10%, from 21% which is normal, while the excise tax on electricity will remain at 0,5% until April 30. Also, the 7% tax on electricity generation, which is ultimately passed on to consumers, will remain suspended until the end of March.
philenews.com