President of the Republic Nikos Christodoulides announced on Wednesday a new support package exceeding €60 million, stating the government’s primary focus is enhancing the safety net for vulnerable groups and support to the middle class.

The new package, includes the extension of the state support to cover the increased cost of electricity bills for an additional two months, extending the reduction of excise tax on motor fuel until the end of March, one-off support grants to vulnerable household that receive allowances from the Deputy Ministry for Social Welfare, new measures for refugees, as well as the abolition of the €350 annual company fee.

The new set of measures follow the package announced on October 2023, with a fiscal impact of €196 million, which apart from support for high electricity bills and the reduction of excises duties for fuel, also included a zero VAT tax rate for basic goods, increased allowances for the vulnerable, as well medium-term measures for alleviating the cost of energy and accessible housing.

“In October 2023 we announced a €196-million package. The new package of targeted measures I announced today exceeds €60 million, without taking into account the support of the Central Agency for the Equal Distribution of Burdens, is within our fiscal capability and is based on Cyprus’ steadfast growth trajectory,” the President said in a televised message, after the Council of Ministers meeting.

The package includes, the extension of the scaled electricity cost subsidy from March 1 to April 30, 2024, for retail, commercial and industrial consumers, while for vulnerable consumers the subsidy will cover 100% of the electricity price increase, as well as the reduced excise duties on motor fuels until March 31.

In a bid to assist vulnerable households eligible for relevant benefits from the Deputy Ministry of Social Welfare based on income criteria, the Cabinet approved a one-off support for each child, with a maximum amount of 250 euros for single-parent families, whereas families with more than four dependent children will receive an additional amount.

Furthermore, households that receive a Minimum Guaranteed Income and are not included in the aforementioned categories, will receive a corresponding lump sum, Christodoulides added, noting that more than 27,000 families will benefit from these measures.

President Christodoulides announced measures for refugees extending benefits in relation to housing plans of the Central Agency for Equal Burden Distribution.

The package also includes new lending schemes concerning the renovation of homes, the purchase of household appliances and the energy upgrade of existing homes, without income criteria, as well as the expansion of beneficiaries of the Loan Scheme for professional activity of Young Entrepreneurs.

Furthermore, in a bid to provide additional support to businesses, the President announced the abolition of the annual company fee of 350 euros which has been in place in 2011.

“All of the aforementioned, were made possible due to our responsible fiscal policy and our unwavering focus in the creation of conditions for sustainable growth, which enables us to exercise social policy aiming to improve the every-day life of the citizens and the competitiveness of our businesses, the President concluded.