President Nicos Anastasiades will chair a meeting with relevant ministers and institutions to address the impact of the global prices crisis on Friday, focusing on mitigating the problems for vulnerable population groups.
A wide range meeting aimed at assessing measures to address the effects of price increases will be held at the presidential palace.
The meeting was convened by the President and will be attended by the ministers of finance and commerce, the acting minister of labour and the deputy welfare minister.
Anastasiades has made it clear that the government has the sensitivity and determination to help according to the financial capabilities of the state.
Finance Minister Constantinos Petrides told CyBC that among other things, the possibility of reducing VAT and setting a price ceiling for some products will be on the table.
Meanwhile government spokesman Marios Pelekanos said the meeting will probably decide to maintain the reduction of the excise tax on fuel for a certain period of time.
Both horizontal measures and support for vulnerable households will also be considered, he said.
The possibility of reducing the prices of certain products will also be on the table, Pelekanos added, depending on the possibilities of the state and what is allowed by European Union directives.
Meanwhile, the Employers and Industrialists Federation (Oev) sent suggestions on ways to deal with inflation to the president ahead of the meeting.
Among others, Oev proposed the extension until the end of the year of the reduction of the excise tax on fuel and the reduction of VAT on electricity to ten per cent for residential consumers and five per cent for vulnerable groups.
They also suggested a reduction of VAT on fuel, due to the increased revenue to the state from the continuous increase in fuel prices, a reduced or zero rate of VAT on fresh milk, bread as well as on energy saving projects by businesses and households.
Oev highlighted the need to support domestic agriculture and livestock production, with a commitment to maintain prices at agreed levels.
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