A package of eight measures across sectors including electricity, fuel, VAT on food, agriculture, transport and tourism has been announced by Cyprus President Nikos Christodoulides to support households and businesses. In a televised message following Thursday’s Cabinet meeting, the President said that economic stability constitutes national security and warned that profiteering would not be tolerated.
The total cost of the measures, including those already in force, exceeds €200 million, he said.
The President announced a reduction in VAT on electricity to 5% for all residential consumers from 1 May 2026 until 31 March 2027, a reduction in excise duty on motor fuels by 8.33 cents per litre for April to June 2026, zero VAT rate on meat, poultry and fish from 1 April to 30 September 2026, in addition to the existing zero VAT on fruit and vegetables, and the decision not to impose Green Tax on fuels, which would have increased prices by 9 cents per litre.
The package of measures also includes a 30% wage subsidy for employees in the hotel industry for units operating throughout April 2026, a support scheme for airlines to ensure continued connectivity with key tourism markets, a 15% subsidy for farmers on fertilisers for April and May and a 15% subsidy for agricultural supplies for the same period.
President Christodoulides said that, just as the government has taken all necessary steps to ensure national and public safety, it is acting decisively to support society and the economy.
He noted that Cyprus is in a region experiencing “significant geopolitical instability”, stressing that citizen safety remains the government’s top priority. He added that the swift response of Greece, France, Italy, Spain and the Netherlands has strengthened both the country’s deterrence capacity and public sense of security.
The President emphasised that strong economic performance, including high growth rates, a significant fiscal surplus, low public debt and low inflation, enables the government to respond effectively to external challenges.
