Cabinet approves extension of measures to compensate high living costs

The Cabinet has approved a proposal by Finance Minister Makis Keravnos for the extension of measures to compensate the living costs of Cypriot households.

They fall in the framework of targeted measures, taking into account the fiscal conditions and challenges as well as the summer climate conditions on the island, Government Spokesperson Konstantinos Letymbiotis said, following the Cabinet's 19 June meeting.

He said that the Ministers decided to extend the measure of a staggered subsidy on the price of electricity consumption for the billing months July 2024 - October 2024, for electricity bills up to the end of October this year. The bills cover domestic, commercial and industrial consumers. For vulnerable consumers, the subsidy covers 100% of the increase in the charging price of electricity consumption, he explained.

The cost of the extension amounts to €12 million, and affects 400,000 households and 100,000 businesses. The Cabinet also decided to extend the application of the zero VAT rate on basic items until the end of September.

The total cost of this measure amounts to €11 million.

The Government Spokesperson noted that "the responsible and prudent fiscal policy pursued by the government, lays the foundations for the economy to be successively upgraded by foreign rating agencies, to have a positive image and to become an attractive quality investment destination, allowing for targeted measures to be taken that substantially improve the daily life of the citizens."

Letymbiotis said that the implementation of the governance programme is continuing with the aim to take measures to permanently deal with energy issues, such as green transition.

(Source: CNA)