Nikos Christodoulides has announced a new set of measures to lower the cost of basic goods. Starting from April until September 30, 2026, there will be a zero VAT rate on meat, poultry, and fish. This adds to the existing zero VAT on fruits and vegetables.
He stated that the Government is acting responsibly and with planning. He highlighted that the Cypriot economy is strong, showing good growth rates, a fiscal surplus, and low inflation. These factors make it possible to provide targeted support for society.
In this context, the VAT rate on electricity will drop to 5% for all households. This change will take effect from May 1, 2026, until March 31, 2027. Also, there will be an 8.33 cents per liter cut in excise duty on motor fuels from April to June 2026.
The focus is on lowering the cost of basic goods, with a zero VAT rate on meat, poultry, and fish from April to September 30, 2026, adding to current measures for fruits and vegetables.
At the same time, the Government decided against imposing green taxes on fuels. This prevents an extra burden of about 9 cents per liter.
Meanwhile, targeted actions are being taken to support the real economy and key sectors. A subsidy covering 30% of employee wages in the hotel industry is planned for businesses that stay fully operational in April 2026. There’s also a support plan for airlines to maintain connectivity for the country.
Additionally, there are plans to boost the primary sector with a 15% subsidy for buying fertilizers and agricultural supplies in April and May 2026.
The President mentioned that the total fiscal cost of these new measures, along with existing ones, is over 200 million euros and fits well within the country’s fiscal framework. He emphasized that economic stability is crucial for national security. The Government will keep providing targeted and temporary measures to protect citizens and ensure economic growth continues.
