The total amount that will have been spent by 31 August 2022 to address inflationary pressures and inflation amounts to almost €300 million., an amount equivalent to 1.5% of the GDP of the Republic of Cyprus, Government Spokesman Marios Pelekanos said.
In a written statement regarding the package of measures approved by the Council of Ministers to address inflationary pressures, Mr. Pelecanos said that on the instructions of the President of the Republic, following the meeting held on 20/05/2022, meetings were held under the chairmanship of the Minister of Finance with the Ministers and Deputy Ministers concerned in order to finalise the additional measures to address inflationary pressures and inflation.
As reported, following an assessment of the proposals submitted, the Council of Ministers approved the adoption of additional one-off targeted measures amounting to €103 million to relieve mainly, but not only, the most vulnerable groups of the population. This package, he adds, comes on top of the measures already taken by the Government at the onset of inflationary pressures, amounting to more than €193m.
Consequently, Pelecanos says, the total amount that will have been spent by 31 August 2022 to address inflationary pressures and price pressures amounts to almost €300m, an amount equivalent to 1.5% of the GDP of the Republic of Cyprus
It is noted that these measures are fully in line with the guidelines of the European Commission and in accordance with the fiscal capacity of the state, so as not to endanger fiscal stability.
Pelecanos detailed the new package of measures which includes 14 measures at a total cost of €103m.
Support for pensioners
As stated in the written statement, pensions are being adjusted to take into account the increase in inflation.
As of July 1, it is estimated that the pensions of 165,200 beneficiaries will increase by approximately 4.3% (the final rate will be determined depending on the level of inflation for the months of May and June 2022).
It should be noted that as of 1/1/2022, an increase of 1.22% has already been given to pensions and other benefits, based on the increase in average insurable earnings in 2021 compared to those in 2020, as provided for in the legislation.
Consequently, the increase which will be granted from 1 July 2022 will be the second for this year.
Support for vulnerable groups
The Representative reports that a one-off grant is granted to support vulnerable groups (covering the period up to 31/08/2022)
In detail in Category 1 (Beneficiaries 6.639 households), it is stated that all family units, which are recipients of child benefit and have an annual gross income in the previous year of up to €10.000, a lump sum of €150 will be paid for each child up to the age of 18 years
In Category 2 (Beneficiaries 13,008 households) it is noted that all family units, which are recipients of child benefit and have an annual gross income of the previous year of €10.001 to €19,500, will be paid a lump sum of €120 for each child up to the age of 18.604 households falling under this category of income criteria) it is stated that all family units, which are recipients of child benefit and have an annual gross income in the previous year of between €19,501 and €29,000, with 3 or more children, will be paid a one-off amount of €100 for the third or additional children up to the age of 18
In Category 4 (Beneficiaries 1.587 households out of 13,323 falling under this category of income criteria) it is noted that in all family units, which are recipients of child benefit and have annual gross incomes in the previous year of, €29.001 to €39,000, with 3 or more children, will be paid a lump sum of €80 for the third or additional children up to the age of 18
For Category 5 (beneficiaries 1,037 households out of the 8,866 that fall under this category of the income criteria) it is stated that all family units, which are recipients of child benefit and have annual gross incomes in the previous year, from €39.001 to €49,000, with 3 or more children, will be paid a lump sum of €60 for the third or additional children up to the age of 18 years
A total of 24,075 families with a total number of 45,883 children will benefit from the above measures.
With regard to Category 6 (Beneficiaries 23.087 including spouses and dependent children older than 18 years and up to 28 years), it is noted that all family units not falling into the above categories, which are beneficiaries of the Minimum Guaranteed Income or Public Assistance and have no dependent children under 18 years of age), will be paid a lump sum of €100 for the beneficiary, €50 for the beneficiary's spouse, and €25 for each child of the beneficiary belonging to the family unit
This measure is expected to benefit 18,454 beneficiaries, 2,401 dependants of beneficiaries and 2,232 spouses of applicants
For Category 7 (Beneficiaries 4.750 persons with disabilities who receive benefits from the Department for the Integration of Persons with Disabilities), it is noted that all persons with disabilities who do not fall into the above categories, who are beneficiaries of benefits from the Department for the Social Integration of Persons with Disabilities, (blind, quadriplegic, paraplegic, severely disabled, beneficiaries of mobility allowance) will be paid a lump sum of €100
4 people are expected to benefit from this measure.750 people with disabilities.
A total of 73,720 persons will benefit from a lump sum grant, the Representative said.
It should be noted that the lump sum grant will not be taken into account in the calculation of total income for the purpose of determining the entitlement or income category to which each beneficiary falls in the scheme he or she is already participating in.
It also refers to an immediate announcement (effective September 2022) of a Child Care Services Subsidy Plan for children up to age 4 for subsidizing tuition and feeding fees in day care centers
As noted, 16.000 potential beneficiaries, with the monthly allowance amounting to 80% of the tuition and feeding fees, with a subsidy of between €100 and €350 per month for each child, based on criteria that take into account, among other things, the number of children.
Further details will be announced by the Ministry of Labour and Social Security and the State Ministry of Social Welfare.
Electricity
With regard to electricity, the horizontal and targeted measures to reduce VAT on electricity will be extended until 31 August 2022, i.e. VAT will be reduced from 19% to 9% for residential consumers and from 19% to 5% for vulnerable consumers.
There will also be an increase in the subsidy for beneficiaries of the Installation of Photovoltaic Systems and Roof Insulation Scheme, for Vulnerable Consumers: from €750 to €1,000 per installed kw, and for residential consumers: from €250 to €375 per installed kw.
In addition, the list of vulnerable energy consumers will be expanded to include an additional 19,500 family units with annual gross incomes of up to €19,500 to benefit from increased subsidies under the Renewable Energy and Savings and Upgrade Grant Schemes of the Ministry of Energy, Trade and Industry.
Further details will be announced by the Ministry of Energy, Trade and Industry.
Further details will be announced by the Ministry of Energy, Trade and Industry.
There will also be an increase from 90% to 100% of the possibility of covering the annual electricity consumption of the premises for own consumption from the electricity generated by a photovoltaic system for residential consumers and businesses.
Therefore, it is reported, residential consumers and businesses will be able to cover all their electricity needs through the installation of photovoltaic systems which makes the investment more attractive since the payback period and electricity costs are reduced.
In addition, the licensing procedures for the installation of RES systems will be accelerated and simplified so that the building permit for the installation of a RES system will be considered granted in cases where there is already a planning permit.
Fuels
For fuels, the measure to reduce the excise duty on motor fuel and heating oil will be extended until 31 August 2022
Support measures for the agriculture and livestock sector
Support measures for the agriculture and livestock sector include support for recognised Producer Groups and Organisations in crop production amounting to €700,000 to cover part of their operating costs and additional support to livestock and agriculture sectors of €8.8 million to cover part of the price increases due to inflationary pressures.
This is new support, in addition to the €8 million approved by the Council of Ministers on 13 April 2022.
Additional measures / initiatives
The Council of Ministers also decided to intensify inspections to combat obscenity. In the event that any phenomena of obscenity are observed, the Government will proceed with the imposition of a cap.
In addition, the Council of Ministers welcomes the fact that the RAEK's intention to issue a relevant decision to set a cap on the purchase price of RES at 11s/kwh compared to 19s/kwh, which is the current price, is also moving in the same direction. This decision will apply to the RES projects included in the Plan with an ultimate end in the competitive electricity market.
Finally, the Council of Ministers calls on the House of Representatives to proceed with the immediate passage of the bill that has been pending before it for a long time in order to implement the Government's decision to reduce the consumption fee of the RES Fund to 0.1s/kWh from the current 0.5s/kWh.
Source: CNA
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