The President of the Republic, Nikos Christodoulides, during his inter-channel interview on March 12 – marking his two years as a President –  announced the reduction of VAT on electricity from 19% to 9%.

The decree issued by the Council of Ministers to reduce VAT on electricity bills from 19% to 9%, from April 1st and for a period of one year, i.e. until March 31st, 2026, was published on Friday in the official newspaper of the Republic.

Specifically, the Council of Ministers, exercising the powers granted to it by virtue of subsection (2) of article 18A of the Value Added Tax Law, issued the following Decree. This Order shall be cited as the Value Added Tax (Amendment of the Twelfth Schedule) Order of 2025.

By order of the Council of Ministers, the Twelfth Schedule of the basic law is amended by adding, after paragraph 5, the following new paragraph 6: “6. Supply of electricity falling under the Single Registration Domestic Tariff with code 01 and the Double Registration Domestic Tariff with code 02, supply of electricity falling under the special domestic tariff for specific categories of vulnerable consumers with code 08 and the thermal energy storage tariff with code 56 for consumers falling under Tariffs 01, 02 and 08 of the Cyprus Electricity Authority.”