Cyprus announces 200 million euro economic support package

On Thursday, March 26, President Nikos Christodoulides announced a 200 million euro support package to mitigate the economic impact of regional instability and the conflict in the Middle East. The measures, which include existing initiatives, aim to stabilize the economy and support households and businesses. Key provisions include a reduction of VAT on electricity to 5% for all households from May 1, 2026, to March 31, 2027, and an 8.33 cent per liter reduction in motor fuel excise duty from April to June 2026. Additionally, the government cancelled a planned Green Tax on fuel. VAT on meat, poultry, and fish will be zero-rated from April 1 to September 30, 2026. The agricultural sector will receive 15% subsidies for fertilizers and agricultural supplies in April and May 2026. For the tourism industry, the state will subsidize 30% of staff wages for hotels remaining open throughout April 2026 and provide support to maintain flight connectivity. The President stated that the government has contingency plans ready should the regional crisis escalate further.