The Finance Ministry is preparing legislation to extend a fuel tax reduction scheme until the end of November, a ministry representative told the House Energy Committee on Tuesday.
The current measure, which cuts fuel excise duty by 8.33 cents per litre, is due to expire on September 17.
Responding to a question from AKEL MP Andreas Pasiourtidis during the committee meeting, the Finance Ministry representative said: "It is in our plans, it has been approved by the Minister" and added that the bill is expected to be submitted for Cabinet approval and then tabled in parliament before September 17, when the subsidy expires, "so that we are ready for it to be implemented on the 18th of the month".
The draft legislation being prepared by the ministry is expected to extend the subsidy until the end of November.
The representative said European Union rules set a limit on the extent to which member states can reduce fuel excise duties and added that Cyprus has lowered the tax to the maximum level permitted.
She also said that excise duty accounts for more than 50% of fuel taxation.
Source: CNA
