The Cabinet is looking to extend the electricity subsidy and zero-VAT initiative on essential goods to alleviate the impact of rising costs on citizens. Social welfare measures may also be prolonged to provide targeted support to vulnerable groups in need.
What actions is the Cabinet considering to address the rising cost of living?
- The Cabinet is considering extending the electricity subsidy until the end of June.
- They are discussing the potential prolongation of the zero-VAT initiative on essential goods until the end of May.
- Social welfare measures targeting vulnerable groups may continue to provide targeted support.
Addressing the Fuel Tax Subsidy Expiry
The Cabinet is convening for an extraordinary session this Thursday. Their agenda is clear: they need to formulate a strategy to counter the steepening cost-of-living curve that is currently impacting citizens. As the fuel tax subsidy approaches its expiration date, the government has signaled that it will not be renewing the benefit past the set deadline of next Monday.
Considering Extensions to the Electricity Subsidy
In a bid to cushion consumers against the economic squeeze, there’s talk of sustaining the electricity subsidy until the end of June. Initially introduced last October and subsequently extended in February until April 30, this subsidy has provided some relief to household budgets. It’s interesting to note that, when first implemented, this measure meant an approximate €70 savings per bimonthly bill for the average user. However, fluctuating oil prices have since eroded the subsidy’s impact to an average saving of about €14.
Zero-VAT Initiative on Essential Goods
The scope of the Cabinet’s discussion also includes the potential prolongation of the VAT suspension on essential goods, a measure that’s been in place and is currently set to last until the end of May. This initiative has been a boon for consumers, offering significant savings on a diverse range of necessities, from food items like meat, fish, and vegetables to other essentials including baby food and hygiene products. The financial relief has been tangible, with estimates of around €7.50 in savings on every €95 spent—an effective 8% discount.
Social Welfare Measures on the Table
Aside from these subsidies, there is also contemplation over the continuation of various social welfare measures. These were initially introduced in February and targeted support to the more vulnerable segments of society, including single parents and internally displaced persons. The government’s approach combines fiscal prudence with a focus on targeted assistance, aiming to ensure that aid reaches those who need it most.
What actions is the Cabinet considering to address the rising cost of living?
- The Cabinet is considering extending the electricity subsidy until the end of June.
- They are discussing the potential prolongation of the zero-VAT initiative on essential goods until the end of May.
- Social welfare measures targeting vulnerable groups may continue to provide targeted support.
Will the fuel tax subsidy be renewed past its expiration date?
No, the government has signaled that the fuel tax subsidy will not be renewed past the set deadline of next Monday.
How much savings have consumers experienced with the electricity subsidy?
Initially, the electricity subsidy provided an approximate €70 savings per bimonthly bill for the average user. However, fluctuating oil prices have since eroded the subsidy’s impact to an average saving of about €14.
What goods are included in the zero-VAT initiative on essential goods?
The zero-VAT initiative on essential goods includes a diverse range of necessities, such as food items like meat, fish, and vegetables, as well as baby food and hygiene products. Consumers have been saving around €7.50 on every €95 spent due to this initiative—an effective 8% discount.
