The Cabinet approved seven measures to address inflationary pressures and rising costs, with a total cost of pound 70 million, at its meeting Wednesday, Finance Minister Makis Keravnos said in remarks at the Presidential Palace following the meeting. He also noted that the total cost of the measures being introduced, together with those already in effect, amounts to about pound 160 million.
Specifically, the subsidy for vulnerable consumers (Category 08) and commercial use (Category 10) is being renewed for all of 2027. The measure benefits 23,300 households and covers 100% of the increase in electricity costs, the minister said. A total of 20 categories of eligible beneficiaries are covered under the scheme.
According to Keravnos, about 82,500 commercial consumers, including businesses, shops and small businesses, also benefit from the subsidy on a sliding scale based on consumption, with coverage reaching up to 85%.
The second measure concerns extending the zero-VAT scheme for a list of specific basic products, which expires at the end of 2026 and will be renewed for the whole of 2027. The list includes fresh fruit, vegetables, infant milk, baby diapers, adult diapers and feminine hygiene products.
At the same time, the zero-VAT measure on meat, fish and poultry, which expires today, is being renewed and expanded to include additional everyday products such as bread, milk, coffee, sugar and baby food. The measure will remain in effect until May 31, 2027, with its implementation beginning Oct. 12, 2026.
Regarding heating oil, the Minister said the excise duty will be reduced to the lowest level permitted by the European Commission. Specifically, it will be cut from 7.4 cents per liter to 2.1 cents per liter, a reduction of 5.3 cents per liter. The measure will be in effect from November 1 through April 30, 2027.
Regarding the purchase and installation of photovoltaic systems by residential consumers, VAT will be reduced from 19% to 9%, with the measure taking effect immediately upon the issuance of the relevant decree.
The next measure provides for a one-off pound 200 payment to specific groups of vulnerable citizens who receive public assistance. The Minister said the measure covers 53,511 beneficiaries, including recipients of the Guaranteed Minimum Income (GMI), people with disabilities who receive a mobility allowance, families of low-income pensioners who receive the relevant benefit, and families with three or more dependent children who receive a child benefit.
Finally, the seventh measure will provide an allowance to residents of mountainous areas, benefiting 10,500 households and 24,000 beneficiaries. The allowance will amount to pound 175 for elevations of 600 to 800 meters, pound 225 for 801 to 1,000 meters, and pound 260 for elevations above 1,000 meters. At the same time, Keravnos said the allowance will increase by pound 50 per household or residential unit, depending on elevation, while existing amounts for residents of mountainous and remote areas will increase by pound 35.