Nicosia, Cyprus. The government on Thursday announced a package of eight measures aimed at combating rising costs after four weeks of war in the Middle East.
Tax measures on electricity, fuel, and food
The reduced five-per-cent rate of value added tax on electricity will be extended until May next year, after initially being expected to expire in May this year. The fuel consumption tax will be reduced to 8.33 cents per litre between April and June.
The rate of VAT on meat, poultry, and fish will be set to zero between April and September. “Green taxes” on fuel, which had been set to raise the retail price of fuel by nine cents per litre, will not be implemented.
Support for tourism and connectivity
The government will cover 30 per cent of the wages of all workers in the hotel sector during April. It will also draw up a “special plan for more support for airlines to secure the seamless connectivity of the country with important destinations for the attraction of tourists”.
Support for agriculture
The government will subsidise 15 per cent of the cost of all fertiliser and agricultural supplies for farmers in April and May.
How do you expect these measures to affect your costs over the coming months?