Cabinet Plans Measures to Extend Cost-of-Living Support

Government Deliberates on Cost-of-Living Relief Measures

As the nation grapples with the escalating cost-of-living crisis, the Cabinet is poised to convene in an extraordinary session this Thursday. The agenda is centered on the approval of a new package of measures to alleviate the cost-of-living crisis, a move that could bring significant relief to citizens nationwide.

The urgency of the meeting is underscored by the looming end of the fuel tax subsidy. Finance Minister Keravnos has made it clear that there will be no extension beyond the current expiry date set for the upcoming Monday. Despite this, there is a glimmer of hope for consumers as the Cyprus News Agency (CNA) reports that the government is contemplating the prolongation of the electricity subsidy until the end of June. This measure has seen several extensions since its inception in October, with the latest one due to expire on April 30.

Initially, this subsidy offered an approximate €70 cut per bimonthly bill for the average user. However, subsequent drops in oil prices have seen this benefit shrink to around a €14 reduction for the average consumer. Nonetheless, even this modest relief has been welcomed by households struggling to balance their budgets.

In a bid to further ease financial pressures, there are discussions about maintaining the suspension of VAT on essential items until June’s end. This list of zero-VAT products is extensive, including staples such as meat, fish, vegetables, bread, milk, and eggs, along with baby necessities and hygiene products. The VAT exemption, which was initially set to expire at May’s end, has been hailed by Minister Keravnos for its “significant benefits for consumers,” translating to an average saving of €7.50 on purchases worth €95.

Alongside these subsidies, the government is also reportedly weighing up the option to extend various social welfare measures. These measures were introduced in February and were designed to support vulnerable groups within society, such as single-parent families and internally displaced persons.

With these potential extensions and new measures on the horizon, the government’s commitment to mitigating the financial strain on its citizens remains steadfast. The outcomes of Thursday’s Cabinet meeting are eagerly anticipated by many who hope for continued and enhanced support in these challenging economic times.

The Cabinet is exploring several measures to extend cost-of-living support, including tax relief for low-income families, subsidies for essential utilities, and increased funding for social services. These initiatives aim to alleviate financial pressures on households.

Can the Cabinet extend VAT waivers beyond June?

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