In a move to support consumers, the government has announced a six-month extension of the zero VAT rate applied to essential goods. The latest update sees coffee and sugar being added to the existing list, as revealed by Finance Minister Makis Keraunos. This decision comes as the initial provision was set to expire by October's end.

In addressing concerns about the potential for electricity and fuel subsidies, Minister Keraunos reiterated the government's stance on implementing targeted fiscal measures. "Our focus remains on effective strategies that align with our nation's fiscal framework and discipline, ensuring our economy's continued stability," Keraunos stated.

Keraunos emphasized that the administration's actions are primarily people-centric. "We are consistently observing economic shifts and will always strive to introduce measures that prioritize the well-being of our citizens," he added.

In another key financial decision, the government has scaled back the special defense levy imposed on bank interest. Previously set at 30%, it will now be reduced to 17%. This move, aimed at benefiting middle-class families and medium-sized businesses, is projected to have a fiscal impact of €16 million.

Keraunos urged financial institutions to follow the government's lead, particularly as deposit interest rates continue to remain stagnant. He commented, "Through this decision, we're aiming to amplify available income for depositors and anticipate that commercial banks will support this initiative."

On the topic of his recent discussions with the Cyprus Banks Association, Keraunos noted that a comprehensive statement detailing the outcomes would be released shortly.