The Council of Ministers of Cyprus approved a package of 8 emergency measures to support households and businesses, aiming to reduce the cost of living and address pressures from international developments.
The measures include a reduction of VAT on electricity to 5% from May 2026 to March 2027 (for residential consumers), and a reduction of the excise duty on fuel by €0.08 per liter for the period April–June. At the same time, zero VAT on basic food items—such as meat, fish, and poultry—is extended until September 2026, adding to already existing zero-rated products like fruits and vegetables. In addition, the planned “green tax” on fuel, which would have increased prices by approximately €0.09 per liter, will not be implemented.
The cost of the 8 measures, together with other existing ones (e.g. electricity subsidies for vulnerable consumers), exceeds €200 million.
In the area of economic activity, a 30% wage subsidy is предусмотрено for hotel units that open early in the season, as well as a support scheme for airlines to maintain connectivity. Furthermore, farmers will receive a 15% subsidy for the purchase of fertilizers and agricultural supplies.
The total cost of both new and existing measures exceeds €200 million, including interventions such as electricity subsidies for vulnerable households and businesses. Nikos Christodoulides stated that “economic stability constitutes national security,” emphasizing that fiscal responsibility enables meaningful support for society.
Source: Philenews
What is fyi.news?
