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Database of national-level policy measures

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

Tax cut on fuel

Μείωση φόρου κατανάλωσης καυσίμων

Country Cyprus , applies nationwide
Time period Temporary, 08 March 2022 – 31 August 2022
Context War in Ukraine
Type Legislations or other statutory regulations
Category Responses to inflation
– Support for fuel expenses
Author Loucas Antoniou (INEK) and Eurofound
Measure added 30 May 2022 (updated 12 September 2022)

Background information

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).

Content of measure

The Law provides for the temporary reduction of fuel tax from 8 March 2022 to 1 June 2022. More specifically, the law provides for:

  • reduction of the rate against classes 1,2,3,4 from €429 per 1,000 liters to €359 per 1,000 liters,
  • reduction of the rate against classes 6 and 10 from €400 per 1,000 liters to €330 per 1,000 liters and
  • reduction of the rate against the classes 7,9,11 from €74,73 per 1,000 liters to €21 per 1,000 liters

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 following updates to this measure have been made after it came into effect.

27 June 2022

On 27, May 2022 the Cabinet decided the extension of the measure covering the period until 31 August 2022.

Use of measure

The measure does not target particular groups but the general population, which is assumed to be the final beneficiary.

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Applies to all citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

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:

  • No involvement
  • Main level of involvement: N/A


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.

Views and reactions

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.


  • 27 May 2022: Support package to repond to inflation (


Eurofound (2022), Tax cut on fuel , measure CY-2022-11/2423 (measures in Cyprus), EU PolicyWatch, Dublin,


Eurofound publications based on EU PolicyWatch

30 January 2023


Measures to lessen the impact of the inflation and energy crisis on citizens

Governments across the EU continue to implement policies to support citizens and businesses in the face of rising food and energy prices caused by the COVID-19 crisis and intensified by the war in Ukraine. As winter approaches, preventing and addressing energy poverty becomes a priority. This article summarises the policy responses as reported in Eurofound’s EU PolicyWatch database from January to September 2022.


12 September 2022


First responses to cushion the impact of inflation on citizens

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.


12 September 2022


Policies to support EU companies affected by the war in Ukraine

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.

5 July 2022


Policies to support refugees from Ukraine

This article summarises the first policy responses of EU Member States, including those of the social partners and other civil society actors, enabling refugees to exercise their rights under the Temporary Protection Directive.


Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.