President Christodoulides has announced a reduction in the VAT rate on household electricity from 19% to 9%, starting from April 1. He emphasized that it will be in effect for one year and will then be evaluated. Speaking during an address marking the completion of two years in office, the President emphasized that this move comes as part of a strategy to ensure more affordable energy and reduce the overall tax burden on consumers.

This policy shift, which aligns with measures presented under the government’s broader tax transformation plan, also reflects a proposal originally advanced by the AKEL party. Although initially left on the table, the idea has now been adopted by the current administration, aiming to provide economic relief to households facing high utility bills.

In reviewing his government’s performance, President Christodoulides underscored the drive toward greater energy self-sufficiency and environmental protection over the past year. He noted that cutting VAT on electricity serves not just as a financial relief measure, but also supports a national roadmap aimed at cleaner, more sustainable energy solutions.