1. Which products are taxable in the Republic of Cyprus with excise duties and what are their applicable rates?
The taxable products and the applicable rates of excise duties are being set out in the Tables.
2. When do you applied total exemption or reduction in the level of taxation on taxable energy products?
A. Exemptions to the excise duty taxation
Under certain provisions and under fiscal control, total exemptions in the level of taxation are applied when energy products are intended for delivery:
i. to organizations and armed forces (article 23 -Directive 92/12/EEC) as well as for the armed forces of UK established in the Republic under the Treaty of Establishment,
ii. for the use as fuel for the purpose of air navigation or navigation within Community waters
iii. for the production of electricity (for at least 100MWh per annum)
iv. for the production of cement,
v. for the use in certain machineries/vehicles in agriculture, horticultural or piscicultural works and in forestry,
vi. as raw materials for the production of other goods (e.g. paints)
Also, biofuels used for transport purposes are exempted from the payment of excise duty under certain provisions.
B. Reduced rate of excise duty taxation
Reduced rate in the level of taxation is applied when energy products(gasoil and kerosene) are intended for delivery:
i. For the use as heating fuel
ii. For stationary motors,
iii. For the technological development of more environmentally-friendly products or in relation to fuels from renewable resources.
iv. For combined heat and power generation
v. For dredging operations in navigable waterways and in ports
vi. For purposes other than heating or propellant use
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