The government of Cyprus has allocated more than €1 billion through five support packages since 2023 to mitigate the impact of high prices, Finance Minister Makis Keravnos has said.
In a message posted on the government's social media on 2 November, the Finance Minister noted that the high cost of living is due to imported inflation, driven by the energy crisis caused by conflicts, adding that a core objective of the government's policy is to improve the daily lives of citizens by implementing a broad social policy designed to protect and bolster the disposable income of workers, vulnerable individuals and households.
Keravnos further said that in order to effectively address the needs of the citizens and small businesses, the government must safeguard a resilient economy, as a result of responsible management.
"This is what we have done in recent years, and it is what we continue to do. Fiscal surpluses and the reduction of public debt allow us not only to service our borrowing but also to return the benefits of economic growth to society through targeted measures", the Finance Minister pointed out.
Keravnos also noted that a new tax reform has been in effect since January adding that for approximately 200,000 citizens, disposable income has already improved and more than 50,000 no longer pay any income tax at all.
He also said that there is a tax deduction for rent and/or mortgage interest on a primary residence, as well as for 'green' investments adding that families with children receive additional tax exemptions namely €1,000 for the first child, €1,250 for the second, and €1,500 for the third and each child afterwards.
The Minister also said that the same applies to the child allowance as income thresholds have been raised to €90,000 for families with three children and to €100,000 for families with four children. For large families with five or more children, income criteria have been abolished, he noted.
As regards the high cost of living, driven primarily by imported inflation as he said, the Minister recalled that since 2023, approximately €1 billion has been allocated through five support packages. He noted that the economy is resilient and therefore the government can support society, adding that the wealth generated by workers and businesses is being returned and distributed throughout society, with priority given to the most vulnerable citizens.
(Source: CNA)
