President Nikos Christodoulides on Thursday announced a package of support measures for households and businesses hit by the war in the Middle East, with the combined cost of new and existing measures exceeding €200 million.
The package covers energy, food, tourism and agriculture. Electricity VAT will be cut to 5% for all domestic consumers from 1 May 2026 to 31 March 2027. Excise duty on motor fuels will drop by 8.33 cents per litre from April through June 2026. The government will also waive a planned Green Tax on fuels that would have added a further 9 cents per litre.
On food, VAT on meat, poultry and fish will be scrapped from 1 April to 30 September 2026, extending the zero-VAT treatment already applied to fruit and vegetables.
Hotels and tourist accommodation that remain open throughout April 2026 will receive a 30% subsidy on staff wages. A separate scheme will provide additional support to airlines to maintain connectivity with key tourist source markets.
Farmers will receive subsidies of 15% on fertiliser purchases and 15% on other agricultural supplies during April and May 2026.
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