The government has announced a new set of additional measures, in addition to those already in force, aimed at further relieving households and supporting the real economy during the repercussions on Cyprus of the current geopolitical tensions in the region.
More specifically, as stated by the President of the Republic, Nikos Christodoulides, the measures include:
- The continued reduction from 1 May, 2026 to 31 March, 2027 of the VAT rate on electricity, to 5% for all household consumers.
- The reduction of the excise tax on motor fuels for the months of April to June 2026, by 8.33 cents per litre.
- Zero VAT rate on meat, poultry and fish from 1 April, 2026 until 30 September, 2026. These products are added to those already at zero VAT rate, fruits and vegetables.
- A decision not to impose the Green Tax on fuel, which would increase the cost of fuel by nine cents per litre.
- A subsidy of 30% of the wages of employees in the hotel industry, for units and tourist accommodations that will be in operation for the entire period from 1 April to 30 April, 2026.
- A plan for the further support for airlines to ensure the seamless connection of the country with important tourist attraction destinations.
- A subsidy scheme for farmers to purchase fertilisers, covering 15% of the cost, for the months of April and May.
- A subsidy scheme for farmers for agricultural supplies, covering 15% of the purchase cost, for the months of April and May.
"The total cost of the measures we are announcing today, together with the existing measures that are still in force, exceeds €200 million," the President of the Republic underlined, emphasising that the cost of these measures has been fully evaluated and falls within the budget surpluses.
"Our country is located in a region with many geopolitical upheavals, such as the one we have been experiencing recently. In the face of this new crisis that we have to manage, our primary concern is the security of citizens in all sectors," Christodoulides noted, adding that it was precisely within this context that the immediate response of Greece, France, Italy, Spain and the Netherlands strengthened the deterrent capacity of the country and the sense of security of its citizens.
"Through the same reasoning, it is of decisive importance that due to our responsible policy, our country's economy is strong and resilient and allows us to intervene effectively, always for the benefit of citizens and society, as, moreover, we have done in many cases, most recently with the support of our livestock farmers," he said in this regard.
"High growth rates, a significant fiscal surplus, limited public debt and low inflation - results of our responsible economic policy - are elements that allow us to optimally manage the impacts of regional developments and strengthen the ability of our economy to face external shocks," Nikos Christodoulides stressed.
"From the very beginning, our government acted with responsibility and with a plan, both in terms of initiatives for stability in the region and in terms of support for society. Just as we took all the necessary measures and utilised every available tool to ensure the security of the country and its citizens, we are doing the same in terms of providing substantial support to society, citizens and businesses," he explained.
"Moreover, our government, within the framework of its social policy, has long been implementing substantial support measures, such as the electricity subsidy for vulnerable consumers and businesses, the reduced VAT rate on electricity and the application of either a reduced or zero VAT rate on basic goods and services," Christodoulides said, emphasising that economic stability constitutes national security.
“Even in times of challenges, responsible politics is the strongest guarantee for society. It is because of this course of responsibility and consistency that our country today has the necessary scope for substantial support,” the President of the Republic noted, expressing the hope that the international initiatives that are underway will soon lead to de-escalation.
“At the same time, however, and precisely because we must continue to be Serious and Responsible, within our plans we also take into account the scenario that the crisis may last,” Christodoulides emphasised. “Through this reasoning and within the framework of our responsible approach to targeted, temporary and adapted measures, the government is proceeding methodically and with a plan, so that the support is substantial,” he underlined, among other things.
Any phenomena of profiteering will not be tolerated.
"With adherence to the principles advocated by social liberalism, the ideological and political framework within which our government operates, economic progress has no real meaning if it does not translate into security and prospects for every citizen," Christodoulides continued.
"We stand by every household and every business, with actions and projects. In this context, the functioning of the market is being systematically monitored. I want to be categorical," the President of the Republic clarified, emphasising that any phenomena of profiteering will not be tolerated. "Strict instructions have already been given to intensify controls in order to ensure consumer protection in practice," he noted.
Pointing out that prudent fiscal policy is not a theoretical approach, he clarified that it is a protective shield for society that also creates the fiscal capacity to intervene when necessary.
"And it is precisely this responsible management that allows us today to announce new measures, without jeopardising the stability of the economy," Nikos Christodoulides underlined.
"With a plan, with responsibility and with consistency, we continue to stand by society, ensuring stability, strengthening the resilience of society and safeguarding the future of our homeland and our citizens," the President of the Republic concluded.
(Source: InBusinessNews)
