Cyprus’ Cabinet on Wednesday approved a package of seven measures to ease the cost of living, which the Finance Ministry said would cost 70 million euros ($82 million) on top of existing measures that bring total support to about 160 million euros.
The package extends electricity subsidies through all of 2027, renewing arrangements for vulnerable consumers and commercial use that were due to expire at the end of this year. About 23,300 vulnerable households in 20 categories of beneficiaries will have 100% of the increase in electricity prices covered. Around 82,500 businesses and shops will receive a tiered subsidy based on consumption, covering up to 85%.
The government also extended a zero rate of value-added tax on a range of basic goods through 2027, including fresh fruit, vegetables, infant milk, children’s diapers, adult diapers and feminine hygiene products. A zero rate on meat, fish and poultry, which expired Wednesday, was renewed, and from Oct. 12 the list will be expanded.
Finance Minister Makis Keravnos said the zero rate will also cover everyday items including all types of bread and milk, coffee, sugar and baby food until May 31, 2027.
On heating oil, the excise duty will be cut to the minimum allowed by the European Commission, from 7.4 cents per liter to 2.1 cents. The cut takes effect Nov. 1 and runs through April 30, 2027. The finance minister has asked the commission for permission to reduce the duty further.
VAT on the purchase and installation of photovoltaic systems by households will fall from 19% to 9%, taking effect immediately once a decree is issued.
A one-time payment of 200 euros will go to certain vulnerable groups and recipients of public benefits. About 53,511 people are expected to benefit, including recipients of the minimum guaranteed income, people with disabilities who receive a mobility allowance, low-pension families, and families with three or more children who receive child benefit.
The seventh measure is a support allowance for residents of mountain areas, covering 10,500 households and 24,000 beneficiaries. It provides an extra 50 euros per household, depending on altitude, and an additional 35 euros per person.
