Breaking news

Government Considers Extending Relief Measures For Households And Businesses

In response to ongoing economic pressures, the Cypriot government is poised to extend key relief measures aimed at alleviating the financial burden on households and businesses. During a meeting on 19th June 2024, the Cabinet will decide on the continuation of a zero VAT rate on essential goods and the extension of subsidies to offset energy costs. These measures, initially set to expire on 30th June 2024, may be prolonged for an additional two months, subject to review and recommendations from the European Commission.

Zero VAT and Energy Cost Relief

The zero VAT rate on essential goods has been a critical policy tool in mitigating the impact of inflation on everyday expenses for Cypriot families. By removing the value-added tax on these items, the government aims to reduce the cost of living and ensure that basic necessities remain affordable. This measure is particularly important in the current economic climate, where inflationary pressures are affecting consumer prices across the board.

In addition to the VAT relief, the government is also considering extending subsidies on energy costs. High energy prices have been a significant contributor to overall inflation, impacting both households and businesses. The proposed extension of these subsidies is designed to provide continued support to those struggling with high utility bills, thereby easing the financial strain and promoting economic stability.

These measures come at a time when Cyprus is experiencing a complex economic landscape, characterised by rising inflation and the need for strategic fiscal management. The government’s proactive stance in extending these relief measures reflects a commitment to supporting the economic well-being of its citizens. By addressing the immediate financial challenges faced by households and businesses, the government aims to foster a more resilient and sustainable economic environment.

Digital Transactions: A Green Approach To Finance In Cyprus

As Cyprus increasingly embraces digital transactions, the environmental benefits of this shift are becoming evident. A recent report highlights that digital payments significantly reduce the carbon footprint associated with traditional banking operations. By decreasing the reliance on physical branches, paper-based processes, and the transportation of cash, digital transactions are contributing to a more sustainable financial ecosystem. This transition is in line with global initiatives to combat climate change and underscores Cyprus’ commitment to promoting a cleaner, more efficient financial landscape.

Digital transactions are not only more convenient and efficient but also significantly less resource-intensive. Traditional banking often involves extensive paperwork, the use of physical infrastructure, and the transportation of money, all of which contribute to higher carbon emissions. In contrast, digital transactions streamline these processes, resulting in lower energy consumption and reduced waste.

The environmental advantages of digital transactions are complemented by their economic benefits. By lowering operational costs and enhancing transaction speed and security, digital payments provide a compelling case for broader adoption. This shift supports sustainable development goals and aligns with the global push towards greener, more resilient economies.

Furthermore, the widespread adoption of digital transactions in Cyprus is expected to drive innovation within the financial sector. With the integration of advanced technologies such as blockchain and artificial intelligence, the digital financial landscape is set to become even more efficient and secure. These innovations not only enhance user experience but also contribute to environmental sustainability by further reducing the need for physical resources.

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter