The Council of Ministers has approved the extension of the reduced value added tax rate on electricity supplied to household consumers until 31 March 2027.
Speaking after Wednesday’s cabinet meeting, Finance Minister Makis Keravnos said the current reduced VAT scheme on electricity was due to expire on 31 March 2026.
“Because the price of electricity supply has not decreased compared with the corresponding period last year, the government decided to extend the application of the reduced VAT rate until 31 March 2027,” he said.
Keravnos noted that the measure carries a fiscal cost of around €40 million. He added that the extension forms part of a broader assessment of policies aimed at addressing persistently high energy prices and at strengthening households’ disposable income.
Source: CNA