Christodoulides unveils €60M relief package amid rising prices

In an address to the nation, the President of Cyprus unveiled a series of targeted measures aimed at alleviating the economic challenges faced by households and businesses amidst rising prices. The comprehensive support package, totaling over 60 million euros, builds upon the government's previous initiatives and reflects a commitment to responsible fiscal policies.

Key measures outlined in the new package include:

1. Extension of Fuel Excise Duty Reduction: The reduction in excise duty on motor fuels will be extended until March 31, 2024, providing continued relief to consumers.

2. One-Time Support to Vulnerable Households: One-time financial support will be provided to households receiving benefits from the State Ministry of Social Welfare based on income criteria. Single-parent families, families with multiple dependent children, and households with a minimum guaranteed income will benefit from these measures.

3. Electric Car Sponsorship Scheme Enhancement: The budget for supporting large families through the electric car sponsorship scheme will be increased by 2 million euros, encouraging the adoption of electric vehicles.

4. Refugee Welfare Improvements: The President announced significant enhancements for refugees, including an increase in housing loan subsidies, home repair subsidies, and support for students. New loan schemes for home renovation, appliance purchases, and energy upgrades will be introduced.

5. Tax Relief for Businesses: The annual company tax of 350 euros imposed in 2011 will be abolished, providing relief to businesses.

6. Continuation of VAT Reduction on Essentials: The reduced or zero VAT rate on essential goods will remain in effect until the end of May.

The President emphasized that these measures are a result of responsible fiscal planning and sustainable economic development. The aim is to strengthen the social protection network for vulnerable citizens and support the middle class. The President expressed determination to pursue these goals with a people-centered approach, highlighting the government's commitment to building a prosperous and resilient Cyprus.

The Interest Rate Subsidy Scheme for Mortgage Loans, previously announced in October 2023, has received approval from the European Commission and is now in effect.

The President concluded by reaffirming the government's dedication to a stable growth path, with a plan and determination to create a better future for the people of Cyprus.