A popular tourist destination in Europe is taking steps to mitigate the impact of the war in the Middle East
Cyprus, a popular tourist destination in Europe, will further cut value-added tax (VAT) on electricity bills, lower fuel excise and subsidize wages in the key tourism sector to help people cope with rising costs stemming from the US-Israeli war against Iran, President Nikos Christodoulides said on Thursday, Reuters quoted him as saying.
Cyprus, the European Union state closest to the Middle East, has seen a slowdown in tourist bookings amid conflict in the region that has heightened security concerns among travelers after a British base on the island was hit by a drone on March 2.
President Christodoulides stated that the measures will come into effect in April and May and will have different durations.
The measure to subsidize wages in the tourism sector, up to 30 percent, applies for April, while the VAT reduction to 5 percent for household electricity bills will be valid until March 2027, it said.
The VAT rate on electricity has already been reduced to 9%, from 19%, amid the energy crisis caused by the war in the Middle East.
