Philenews

Support Measures for Consumers: Focus on Electricity and AHK

Published March 26, 2026, 09:16
Support Measures for Consumers: Focus on Electricity and AHK

There is ongoing discussion regarding the need for support measures for consumers, with an emphasis on reducing VAT on fuels and essential goods. The Ministry of Finance is considering various scenarios, but there is concern that businesses absorb the VAT reduction by raising prices in a way that is not readily apparent to consumers. Reducing VAT on electricity is proposed, as the Electricity Authority of Cyprus (AHK) is a regulated organization and cannot exploit the reduction. Support through the AHK is considered more effective, as it ensures that the reduction reaches consumers. Reducing VAT on fuels is less effective due to a lack of regulatory control and the risk of profiteering.