THESE ARE THE EIGHT MEASURES TO SUPPORT HOUSEHOLDS AND BUSINESSES - NATIONAL SECURITY, ECONOMIC STABILITY, STRESSED THE PRESIDENT OF THE REPUBLIC - Filenews 26/3 - by Eleftheria Paizanou
The Council of Ministers decided on a package of eight measures to relieve households and support the real economy. The measures move in the direction of reducing energy costs, address the increase in the prices of products in the supply chain and contribute to supporting the tourism industry and farmers.
Specifically, the measures are as follows:
-From May 1, 2026 to March 31, 2027, the VAT rate on electricity is further reduced, to 5% for all household consumers.
-Reduction of the special consumption tax on motor fuels for the months of April until June 2026, by 8.33 cents per liter.
-Expansion of the list of zero-rate VAT products. Specifically, from April 1, 2026 until September 30, 2026, meat, poultry and fish are included in the zero VAT list. These products are added to the already existing ones with zero VAT rate, fruits and vegetables.
-Non-imposition of Green Taxation on fuel, which would additionally burden fuel costs by 9 cents per liter.
-Subsidy of 30% of the earnings of employees in the hotel industry, for units and tourist accommodation that will be in operation for the entire period from April 1 to April 30, 2026.
-A plan to further support airlines to ensure the seamless connection of our country with important tourist destinations.
-Subsidy scheme for farmers for the purchase of fertilizers with 15% coverage of the cost, for the months of April and May.
– Subsidy scheme for farmers for agricultural supplies, with coverage of 15% of the purchase cost, for the months of April and May.
The new package of measures is added to the existing measures implemented by the Government, which concern the subsidy of electricity for vulnerable consumers and businesses, the reduced VAT rate on electricity and the application of either a reduced or zero VAT rate on basic goods and services.
The total cost of the current measures, together with the existing measures still in force, exceeds €200 million.
National Security and economic stability
The President of the Republic, Nikos Christodoulides, stated that the Cypriot economy is strong and resilient and allows the Government to intervene for the benefit of citizens and society,
"High growth rates, a significant fiscal surplus, limited public debt and low inflation – results of our responsible economic policy – are elements that allow us to optimally manage the effects of regional developments and strengthen the ability of our economy to cope with external turbulence," he added.
According to President Christodoulides, economic stability is national security. "With commitment to the principles advocated by Social Liberalism, the ideological-political framework in which our government operates, economic progress has no real meaning if it is not translated into Security and Prospects for every citizen. We stand by every household and every business, with actions and projects," he stressed.
At the same time, he indicated that the market will be systematically monitored, declaring that disgusting phenomena will not be tolerated. As he said, strict instructions were given to intensify controls to ensure consumer protection in practice.
Protection shield
According to the President of the Republic, prudent fiscal policy is a shield of protection for the society it creates and the fiscal ability to intervene when required.
He stressed that responsible management today allows the government to announce new measures, without jeopardizing the stability of the economy.
"With a plan, with responsibility and consistency, we continue to stand by society, ensuring stability, strengthening the resilience of society and shielding the future of our country and our citizens," he concluded.
