Minister of Finance Makis Keravnos announced Thursday a new package of five support measures, aimed at counterbalancing the abolition of the zero-tax rate on fuel consumption at the end of the month.
Following an extraordinary meeting of the Cabinet, Keravnos said that the first measure was an extension of the targeted subsidy scheme for electricity costs for an additional two months, May and June. The estimated cost of this measure amounts to pound 5 million and covers over 400,000 households and 100,000 businesses. The subsidy, applies to residential consumers, vulnerable groups, commercial, and industrial consumers.
The second measure he announced concerns the extension of the zero VAT rate on essential household items such as bread, milk, eggs, baby diapers, baby food, meat, and vegetables until the end of June, with a cost of pound 6 million.
The third measure announced by the Finance Minister, concerns bolstering family incomes through targeted one-off support payments in three periods, in May, June,
and July, to specific households are recipients of welfare benefits. Specifically, the Minister said that the measure with a monthly cost of pound 1.2 million, would target recipients of child benefit. Explaining further, he said that single-parent families with an annual income of pound 19,500 and a maximum deposit limit of pound 10,000 would receive one-off support of pound 100 for the first child, increasing by pound 50 for each additional child, with a maximum amount of pound 250. Those with more than four dependent children will receive an additional pound 100. This measure, he said, benefits 5,562 single-parent families.
For families with an annual income of pound 25,000 and a maximum deposit limit of pound 15,000, the one-off payment will be pound 100 for the first dependent child, increasing by pound 50 for each additional dependent child, with a maximum amount of pound 250. Again, an additional pound 100 will be provided beyond four children. With this measure, he said, 10,233 families will benefit.
Households receiving the Guaranteed Minimum Income (GMI) and not included in the aforementioned categories will receive a one-off payment of pound 100 per month for three months. According to the Minister, the measur benefits 17,458 households.
The fourth measure Keravnos announced concerns a one-off payment of pound 100 per month to individuals receiving mobility allowance as Persons with Disabilities. The cost of this measure amounts to pound 1.3 million, benefiting 4,200 individuals.
The fifth measure, he said, is the support of low-income pensioners with pound 100 per month, benefiting 28,000 low -income pensioners.
“The total package amounts to pound 35.3 million and benefits 400,000 household consumers, 100,000 businesses, 33,253 families, as well as 28,000 low-income pensioners,” he noted.
The Finance Minister pointed out that the government understood the increase in households’ cost of living, attributed to external factors and geopolitical developments and always takes into account the fiscal co
nditions.
“Our priority is to announce and implement targeted measures because it has been proven many times that these targeted measures reach those who need them in a timely manner, the most vulnerable, and we must prioritise them,” he said.
Regarding fuel prices he noted that based on current data, on April 1 when the zero VAT rate on fuels will not be applied, fuel prices would be significantly reduced compared to November 2023 when the measure was introduced. He explained that unleaded gasoline 95 octane, will be reduced by 5.3 cents per liter, and diesel by 11.8 cents per liter.
Source: Cyprus News Agency