PRESIDENT Nicos Anastasiades announced on Wednesday, that the government intends to lower VAT for renovating housing units from 19 per cent to 5 per cent.
Speaking at the 88th Annual General Assembly of the Cyprus Chamber of Commerce and Industry in Nicosia, the President said that the decision to reduce VAT was taken following a proposal from the island’s business community.
The reduced rate of VAT will apply to renovations carried out on all housing units and not just primary residences, which has been the case until now.
The President explained that vulnerable consumer groups and residents of remote communities will also benefit from lower VAT when repairing their homes to upgrade their structural adequacy or to improve their energy efficiency.
The proposal is expected to be ratified at the next meeting of the cabinet.