A new package of measures, the cost of which exceeds €60 million, was announced on Wednesday by the President of the Republic, Nikos Christodoulidis, repeating that “our actions are guided by the strengthening of the social protection network of our vulnerable compatriots and the support of the middle class”.
The package of measures includes the extension of the electricity subsidy until the end of April, the extension of the reduction of consumption tax on fuel for another month (end of March), one-off support for households receiving subsidies from the Deputy Ministry of Welfare, abolition of the special annual fee companies of €350 that had been imposed in 2011, as well as new measures to alleviate the refugee world.
The new package of measures comes to be added to the package of October 19, 2023, with a total value of €196 million, which, in addition to subsidizing electricity and reducing consumption tax rates on fuel, also included the application of a zero VAT rate on basic items first aid, extension of benefits and one-off support for vulnerable groups, as well as medium-term measures aimed at finding permanent and sustainable solutions to reduce energy costs and ensure affordable housing.
“In October 2023, we announced a package of measures of 196 million euros. The new package of targeted measures that I announced today, which exceeds 60 million euros without counting the amount of support of the Agency for Equal Burden Distribution that we announced today, is within our fiscal capabilities and on the basis of the stable development path of the Cypriot economy”, he said in a taped statement by President Christodoulidis.
The new measures
According to the President of the Republic, the new package includes the extension of the graduated subsidy measure for electricity costs from March 1 to April 30, 2024, for residential, commercial and industrial consumers, with the subsidy for vulnerable consumers covering 100 % of the increase in the price of electricity, while the measure to reduce consumption tax on motor fuels is extended until March 31, 2024.
Support is also given to households receiving related benefits from the Deputy Ministry of Social Welfare on the basis of income criteria.
In particular, one-time support is provided for each child, with a maximum amount of 250 euros, in single-parent families. Families with more than 4 dependent children will receive an additional amount, one-time support for each child, with a maximum amount of 250 euros for families. Families with more than 4 dependent children will receive an additional amount.
Also, as the President of the Republic mentioned, households that receive a Minimum Guaranteed Income and are not included in the aforementioned categories, will receive a corresponding lump sum.
According to President Christodoulidis, more than 27,000 families will benefit from these measures.
To support large families and taking into account the great interest shown in the purchase of electric cars through the recently announced e-mobility sponsorship program, the relevant budget is increased by 2 million euros.
For the refugee world, it was decided to expand the beneficiaries as well as increase the amounts in relation to the Plans of the Central Agency for Equal Burden Distribution.
In particular, it was decided to increase the mortgage subsidy from 130,000 to 200,000 euros and the subsidy period from 20 to 30 years with the removal of income criteria, while the subsidy is increased from 50,000 to 100,000 euros for repairs to homes without income criteria.
The subsidy for students is also increased with the inclusion of their maintenance costs, in addition to tuition fees, while at the same time the amount of any scholarship will not be deducted from the amount of the student loan as was the case until now. It was also decided to provide new lending plans concerning the renovation of homes, the purchase of household appliances and the energy upgrade of existing homes, without income criteria, while the beneficiaries of the Lending Plan for the professional activity of Young Entrepreneurs are expanded.
In relation to property in the occupied territories, which was used for a loan, which was subsequently repaid, President Christodoulidis announced that it will now be able to be used again in a relevant application to the Central Agency for Equal Burden Distribution, while the loan or interest rate subsidy plans, which granted by the Agency, will no longer be counted.
It was also decided that in applications for Mortgage Loans, it will not be taken into account if the applicants have another private residence, unless they have been approved in the past by the Agency for the specific residence.
It was also decided to abolish the annual company fee of 350 euros imposed in 2011 with the aim of providing additional relief and support for businesses.
President Christodoulidis also reminded that the Interest Subsidy Plan for Mortgage Loans for the purchase and construction of a first home, announced in October 2023, has received the relevant approval of the European Commission and comes into effect immediately.
“We continue the great effort with specific goals, with a plan and with determination. Above all, with responsibility, perseverance and a human-centered approach for the Cyprus we want”, concluded the President of the Republic.