State suspends foreclosures for 3 months, requests 10% reduction in electricity fees

The government on Wednesday agreed to request from the Cyprus energy regulatory authority a 10% cut on electricity usage charges for a period of three months, in view of providing some breathing space as the island traverses the Covid-19 health crisis.

According to the Finance Ministry, several measures received the green light by the government in a bid to curb the economic repercussions of the coronavirus outbreak on the island.

The government also agreed to order the three-month suspension of foreclosures by Kedipes, the state’s asset management company.

Also among the agreed moves is a bill that is set to be drawn up providing for a temporary suspension (until the end of April) of the obligation to file tax returns and pay VAT, provided that the taxable person pays tax due until November 10.

A second bill will also be drawn up reducing the rate of VAT from 19% to 17% for a two-month period, from April 1 to May 31, as well as a reduction of the reduced VAT rate, from 9% to 7% for a 3.5 month period, from April 1to July 15.