Newsroom
On Wednesday, the Cabinet approved seven proposals by the Finance Minister aimed at easing cost-of-living pressures, with the new measures carrying a total cost of €70 million.
The measures are as follows:
1. Electricity subsidies: Subsidies for vulnerable consumers in Category 08 and commercial users in Category 10 will be extended throughout 2027. The measure will benefit 23,300 households, covering the full increase in electricity costs, as well as around 82,500 businesses, which will receive subsidies covering up to 85% of the increase.
2. Zero VAT on essential goods: The zero-VAT measure will remain in place throughout 2027 for fresh fruit, vegetables, milk, baby diapers, adult diapers and feminine hygiene products.
3. Zero VAT expanded: The existing zero-VAT measure on meat, fish and poultry will be renewed and expanded to cover bread, dairy products, coffee, sugar and baby food. The measure will apply from October 12, 2026, until May 31, 2027.
4. Heating oil: The excise duty on heating oil will be reduced from 7.4 cents to 2.1 cents per litre from November 1, 2026, until April 30, 2027.
5. Photovoltaic systems: VAT on photovoltaic systems for household consumers will be cut from 19% to 9%, with the measure taking effect immediately.
6. €200 emergency payment: A one-off payment of €200 will be provided to 53,511 vulnerable beneficiaries.
7. Mountainous areas: Allowances for residents of mountainous areas will be increased, benefiting 10,500 households and 24,000 beneficiaries. The increase will amount to €50 per household, depending on altitude, and €35 per person.
The new measures are expected to cost €70 million. Including measures already in place, the total cost of the government’s support package will reach approximately €160 million.
