Cyprus government implements measures to mitigate economic impact of geopolitical developments

The Ministry of Finance of the Republic of Cyprus assesses geopolitical developments and their impact on citizens daily. It has implemented relief measures to counteract rising living costs, especially for vulnerable groups.

Current measures include:

• Zero VAT on essential products such as fresh fruit and vegetables, meat, poultry, fish, infant milk, nappies, and feminine hygiene products.
• A reduced 5% VAT rate on electricity, benefiting approximately 33,000 low-income households and single-parent families.
• An excise duty reduction on motor fuels of 8.33 cents per litre.
• An increase in child benefits and higher income eligibility thresholds.

Tax reforms, including raising the tax-free income threshold to €22,000 and substantial tax deductions, also benefit workers and households.

The government emphasizes responsible economic policy, fiscal surpluses, and decreasing public debt as benefits reaching society. It continues to monitor citizens’ needs and is preparing additional measures for submission to the Council of Ministers.

The government acknowledges protests as a democratic right but emphasizes ongoing efforts to respond within the framework of sound public finances and European obligations.