Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure CY-2022-11/2423 – Updated – measures in Cyprus
|Country||Cyprus , applies nationwide|
|Time period||Temporary, 08 March 2022 – 31 August 2022|
|Context||War in Ukraine|
|Type||Legislations or other statutory regulations|
Responses to inflation
– Support for fuel expenses
|Author||Loucas Antoniou (INEK) and Eurofound|
|Measure added||30 May 2022 (updated 12 September 2022)|
On 3 March 2022, the Cabinet decided a reduction in fuel consumption tax within the context of policies of the government to mitigate the inflation and the effects of the war in Ukraine. The bill, which amends the basic tax law, was approved by the House of Representatives on 8, March 2022 under the procedure of emergency (Law 21(1)/2022).
The Law provides for the temporary reduction of fuel tax from 8 March 2022 to 1 June 2022. More specifically, the law provides for:
As explained by the Minister of Finance, this is a reduction of 7 cents a litre for diesel and petrol, amounting to 8.3 cents per litre if VAT is included, as well as a reduction of 6.4 cents per litre including VAT on heating oil.
The measure does not target particular groups but the general population, which is assumed to be the final beneficiary.
|Does not apply to workers||Applies to all businesses||Applies to all citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
The measure was decided by the government and approved by the House of Representatives after the pressure exercised by the sum of political parties, social partners and civil society with the on-going increases of fuel and other essential consumers’ goods. No structural dialogue has been proceeded the decision but political parties and social parties have submitted their suggestions to the government for the confrontation of expensiveness. No social partner or political party is involved in the implementation and monitoring of the measure as the Ministry of Finance is in charge of the process.
Despite the fact that the measure was welcomed by political parties and social partners, the government received many criticisms by the opposition parties, in particular, for delays in taking measures but for the need for the expansion of the measures to mitigate the growing trend of prices in essential consumers’ goods.
Eurofound (2022), Tax cut on fuel , measure CY-2022-11/2423 (measures in Cyprus), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/CY-2022-11_2423.html
30 January 2023
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12 September 2022
Although the worldwide pandemic situation had already disrupted supply chains and triggered increases in energy and food prices in 2021, the situation deteriorated in 2022 with the Russian invasion of Ukraine.Article
12 September 2022
This article summarises the first policy responses that governments across the EU have started to implement to support companies affected by the rising prices, and those with commercial ties to Ukraine, Russia or Belarus.
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.