Keravnos heating oil EU appeal as government seeks exemption to further lower tax

The Finance Minister is in open communication with Brussels as he attempts to secure the lowest possible drop of a consumption tax on heating oil, which has jumped to 1,564 euro per litre, with an upwards trend. Makis Keravnos told the Philenews Economy Vidcast that he has launched a derogation process with the European Commission so that Cyprus can enjoy a further reduction of the tax, beyond the 2,1 cents a litre (down from 7), included yesterday in the latest block of household support measures, announced following a Cabinet meeting. The Commission is looking into the request, with Keravnos also making clear that reducing the consumer tax to 2,1 cents is the absolute maximum allowed today by EU regulations. Residents of mountainous regions in particular are facing a tough winter, along a host of other survival issues, with many describing their daily living conditions as ‘desperate’, and current government subsidies seen as highly inadequate. The package of measures announced to the tune of over 70 million euro are described by the government as the latest attempt to tackle the rising cost of living, fuelled mostly by the rising energy prices. Basic foodstuffs zero VAT until late 2027 are at the core of this intervention. They include meat, fish, poultry, seafood, baby milk, diapers, fruit and vegetables, milk and bread. The ministry is also looking to tiered subsidies of electricity, aiming at low wage earners, as well as additional support for residents of mountains regions.