Cyprus seeks EU heating oil tax relief and fiscal flexibility

Cyprus is seeking a derogation from the excise duty on heating oil to mitigate high energy costs for its citizens. The Finance Ministry confirmed the request as Finance Minister Makis Keravnos prepares to attend the Eurogroup and Ecofin meetings in Luxembourg on October 8 and 9.

In addition to the heating oil request, Cyprus is advocating for greater fiscal flexibility within the European Union’s economic governance framework. The goal is to allow member states more room to protect businesses and citizens from the ongoing energy crisis.

The upcoming meetings in Luxembourg will also address banking competitiveness, capital markets, and the impact of energy market developments on the fiscal and structural policies of the euro area.