Nicosia:The government of Cyprus has allocated more than £1 billion through five support packages since 2023 to mitigate the impact of high prices, Finance Minister Makis Keravnos announced on Monday.

According to Cyprus News Agency, the Finance Minister stated in a social media message that the rising cost of living is attributed to imported inflation, exacerbated by the energy crisis stemming from conflicts. He emphasized that the government's core policy aims to enhance the daily lives of citizens by implementing a comprehensive social policy to protect and boost the disposable income of workers, vulnerable individuals, and households.

Keravnos highlighted that the government is committed to maintaining a resilient economy through responsible management, enabling fiscal surpluses and reducing public debt. This approach allows the government to service its debts and return economic growth benefits to society through targeted measures.

The Finance Minister also mentioned that a new tax reform, effective since January, has improved disposable income for approximately 200,000 citizens, with over 50,000 no longer paying any income tax. Additionally, there are tax deductions for rent and mortgage interest on primary residences, as well as for 'green' investments. Families with children receive additional tax exemptions €1,000 for the first child, €1,250 for the second, and €1,500 for the third and each subsequent child.

Furthermore, Keravnos noted that income thresholds for the child allowance have increased to €90,000 for families with three children and €100,000 for families with four children. For large families with five or more children, income criteria have been abolished. The Minister reiterated that since 2023, about 1 billion euros have been allocated through five support packages, underlining the economy's resilience and the government's capacity to support society by redistributing wealth generated by workers and businesses, prioritizing the most vulnerable citizens.