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18 July, 2024
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Government extends subsidies to ease cost of living crisis

Cabinet approves €23 million in measures covering electricity and VAT on basic goods

Newsroom / CNA

The Cabinet approved a proposal on Wednesday by Finance Minister Makis Keravnos to extend measures aimed at compensating for the living costs of Cypriot households. Government Spokesperson Konstantinos Letymbiotis announced the decision following the Cabinet meeting.

The Ministers decided to extend a staggered subsidy on electricity consumption for billing months from July to October 2024. This measure applies to domestic, commercial, and industrial consumers, covering electricity bills up to the end of October. For vulnerable consumers, the subsidy will cover 100% of the increase in electricity prices.

The extension, costing €12 million, will benefit 400,000 households and 100,000 businesses. Additionally, the Cabinet extended the zero VAT rate on basic items until the end of September, a measure costing €11 million.

Letymbiotis highlighted the government's responsible fiscal policy, which has led to successive upgrades by foreign rating agencies and made Cyprus an attractive investment destination. This prudent management allows for targeted measures that significantly improve citizens' daily lives.

The spokesperson added that the government is continuing its governance program with a focus on permanent solutions for energy issues, including a green transition.

Cyprus  |  economy  |  CoLA  |  consumer

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