Nicosia:The Government is actively addressing the rising cost of living while maintaining sound public finances and adhering to European obligations, according to a press release from the Ministry of Finance.

According to Cyprus News Agency, the Ministry continuously evaluates geopolitical developments and their impact on citizens. It has implemented specific relief measures targeting the increasing cost of living, with particular attention to vulnerable groups.

The measures currently in place include a zero VAT rate on essential goods like fresh produce, meat, poultry, fish, infant milk, nappies, and feminine hygiene products. A reduced VAT rate of 5% on electricity benefits around 33,000 low-income households and single-parent families. Additionally, there is an 8.33 cents per litre reduction in excise duty on motor fuels and an increase in child benefit along with higher income eligibility thresholds.

Furthermore, workers and households benefit from tax reforms, notably from raising the tax-free income threshold to £22,000 and from significant tax deductions.

The Ministry emphasized that these measures demonstrate the advantages of responsible economic policy, fiscal surpluses, and decreasing public debt. The Government of Nikos Christodoulides remains attentive to citizens' needs, with the Ministry of Finance preparing further measures for the Council of Ministers.

Protests are recognized as a democratic right, but the Government reassures that it is not idle. Efforts continue to address the situation within the framework of sound public finances and European commitments.