At the end of the month, the subsidy measure for the cost of electricity expires. It has been in effect since last November.
429,000 households and 106,000 businesses benefit from electricity subsidies, with the cost to the state treasury reaching €45 million.
On March 3, the measure reducing consumption tax on motor fuels also expires.
From November 3, 2023, until March 3, 2024, gasoline and diesel are sold at a cheaper rate by 8.33 cents per liter. The fiscal cost is estimated at around €21.8 million.
Additionally, on March 31, the measure reducing tax on heating oil expires.
Initially, the Government decided for the measure to be in effect between December 2023 and March 2024.
However, the Parliament decided for the measure to be implemented two weeks earlier, from November 15, 2023, until March 31, 2024.
During this period, the price of heating oil is reduced by 6.39 cents per liter. The fiscal cost from the implementation of the measure is around €4 million.
In the immediate future, parties are expected to exert strong pressure on the Government to extend these measures for a few more months, which will contribute to the relief of households and businesses.
Last time, both opposition and governing parties had repeatedly called on the Government to continue these measures. Initially, the Government did not consent to the continuation of the measures, but after many weeks, it proceeded with a comprehensive support package amounting to €141 million.
All this while the majority of citizens have seen no differentiation in their wages.
It is reminded that 180,000 employees out of approximately 450,000 in Cyprus have benefited from the increase in the effectiveness of CoLA to 66.7%.
According to data from the Ministry of Finance, 100,000 employees in the private sector and 80,000 in the public sector received an increase in CoLA.
Moreover, the latter also benefited from the restoration of allowances, as their memorandum reduction was limited to 5%.