Good News re Fuel Prices.. VAT cut to ZERO !!!

[trevnhil]

Parliament on Thursday voted through a legislative proposal that
empowers the government to order a price cap on petroleum
products, and also passed bills cutting to ZERO the VAT charged on
fuel and on electricity bills until the end of the year.

https://cyprus-mail.com/2022/07/14/cap- ... ze-on-vat/

As you probably know VAT on fuel is 19% so that is a good saving. I am not sure if my calculations are correct but I think that is just under 30 cents a litre reduction !!! ..

[trevnhil]

I have been out for lunch and other calls, and I have passed quite a few petrol stations. It would seem that the new Zero VAT has yet to come into effect as the prices are the same as previous days..

[galexinda]

As an aside the best price I saw this morning during my shopping trip was at Star Oil on the coast road between Latin Parish Hall and St George's Hotel at €1.79 per litre (can't remember the final digit but other places were in the 1.8xx price range).

UPDATE
It was €1.795 per litre

Useful site to check prices near you: https://www.fueldaddy.com.cy/en

[trevnhil]

I belive that it is only a Govt Proposal at present so prices have not changed just yet.

" Also on Thursday, MPs voted through two legislative proposals aimed at providing relief to consumers amid the current inflation spiral.

Under one of the bills, until the end of the year no VAT will be levied on fuel products; under the other, likewise VAT on electricity bills will be reduced to zero. "

To me, this says that the MP's voted through the proposal..

[Paul]

How many petrol stations are going to take advantage of this and keep the fuel price high and make a extra 19% for them self's.
Paul

[cyprusmax47]

We are in Cyprus, so siga siga

https://cyprus-mail.com/2022/07/15/pres ... es-on-vat/

Max

[trevnhil]

So although the bill was voted in with 31 votes for and 15 against, the government are claiming it will cost them too much.
So they are appealing to the court to get the decision 'squashed'..

[Sheer Khan]

Shame we can’t vote when the elections come round

[josef k]

Sorry chaps, but I read it differently. The actual news articles in the papers say the VAT will be reduced to zero on the fuel adjustment and consumer tax elements of the bill, not the whole bill. So those two elements will be added to the bill after the vat calculation, rather then before as at present.

[trevnhil]

I have looked again Joseph and still see
"Parliament on Thursday voted through a legislative proposal that empowers the government to order a price cap on petroleum products, and also passed bills cutting to zero the VAT charged on fuel and on electricity bills until the end of the year."

I would be interested to hear how other people read the information.

[trevnhil]

Has anyone heard or read any updates on the VAT reduction ??

[galexinda]

No Trev, the link to the article dated 15 July which was posted by cyprusmax47 is the latest I have seen:

'President Nicos Anastasiades on Friday urged patience as he awaits the attorney general’s opinion on whether bills approved by the House plenary on Thursday regarding VAT on fuel and electricity bills are constitutional.

The government is understood to be considering either sending the two new laws back to the House for reconsideration or referring them to the supreme court'.

[cyprusmax47]

Has anyone heard or read any updates on the VAT reduction ??

As I said already: we are in Cyprus, so siga siga to news one can read in the press....
Here an update today in CM:


" The other two bills sent back by Anastasiades relate to parliament’s initiative to rein in inflation.

One – tabled by main opposition Akel – provided for zero VAT on fuel products until the end of the year. The government estimates a loss to state coffers of around €30 million. The other bill – co-sponsored by Diko and Dipa – would likewise have cut to zero the VAT levied on electricity invoices until the end of the year. The loss in state revenues from this is estimated at €45 million.

On these two, Anastasiades said they violate the principle of separation of powers – namely that the legislature has no authority to intervene with the state’s fiscal policy.

Parliament now has 15 days to decide on the president’s bill referrals – it can either accept the president’s position and withdraw the bills, or double down – in which case the matter would be adjudicated by the supreme court.

https://cyprus-mail.com/2022/08/01/pres ... vat-bills/

Max

[Paul]

Filled my car today and vat is still at 19%.

[trevnhil]

Yes because the government complained that it could not manage finances if it had to make the VAT ZERO. So it never happened