Cabinet Plans Measures to Ease Cost-of-Living Crisis by June

Government Deliberates on Extending Cost-of-Living Support Measures

In a move to address the ongoing cost-of-living crisis, the Cabinet is convening an extraordinary session this Thursday. The focus of the meeting is to deliberate and give the green light to a new package of measures designed to alleviate the financial strain on citizens. This initiative is particularly timely as the current fuel tax subsidy is approaching its expiration date without plans for renewal.

The Finance Minister’s announcement that the fuel tax subsidy will not continue beyond next Monday has prompted the government to consider other forms of relief. Notably, the Cyprus News Agency (CNA) reports that there are talks to extend the electricity subsidy until the end of June. Initially introduced in October and extended in February, the subsidy has provided significant savings for consumers, although its impact has lessened with the recent decrease in oil prices, now offering around a €14 reduction for the average consumer.

Alongside electricity cost mitigation, the government is also contemplating the continuation of VAT exemptions on essential goods. The current exemption, which zeroes VAT on staples such as meat, fish, vegetables, and various other necessities, was previously extended through May. Finance Minister Makis Keravnos highlighted the “significant benefits for consumers” from this policy, quantifying the average savings at about €7.50 for every €95 spent.

Moreover, there is a possibility of extending various social welfare measures that were introduced in February. These measures were targeted at supporting vulnerable groups within society, including single-parent families and internally displaced persons. The extension of these measures would continue to provide financial relief to those most in need.

The government’s proactive stance in extending these subsidies and welfare measures reflects its commitment to cushioning the blow of economic pressures faced by its citizens. As these discussions advance, the outcomes of Thursday’s Cabinet meeting are eagerly awaited by those looking for continued support in these challenging economic times.

The Cabinet is exploring a mix of targeted relief measures, including subsidies for essential goods, tax reductions for lower-income families, and potential energy price caps, to address the cost-of-living crisis by June. These initiatives aim to alleviate financial pressures on citizens.

Can the Cabinets plans ease the cost-of-living crisis by June?

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