Government tables heating subsidy measures

The government proposed two emergency measures on Thursday October 13 to subsidise heating bills for those on low incomes and to cut the consumer tax on heating fuel.

Under the proposal, pensioners on less than CYP 500 per month will receive a heating allowance of CYP 50, while those on social security will receive a heating allowance of CYP 100.

Residents of mountainous regions above 600 metres will receive CYP 100 mln.

Although it has not yet made clear whether these are one-off or monthly payments, the figures cited as the total cost imply that these will be one-off, rather than monthly payments.

Around 95,000 pensioners will be entitled to the CYP 50 allowance, which will cost the government CYP 4.75 mln.

Around 18,000 social security recipients will be entitled to the CYP 100 allowance at a cost to the government of CYP 1.8 mln, while the cost to the taxpayer of the mountain subsidies will be 2.2 mln.

Large or poor families will also be entitled to cheaper electricity bills at a cost of CYP 2 mln to the state-owned Eletricity Authority of Cyprus.

Consumer tax cut

The government is also set to cut the consumer tax on lighting fuel and heating oil between November 1 and March 31, 2006 by 3 cents per litre, at a cost of CYP 6.5 mln.

The finance minister, Michalis Sarris, wants the bills to be discussed urgently at next week’s Finance Committee session in parliament.

The measure should therefore be passed just in time for the beginning of winter in Cyprus, when clear skies at night lead to chilly nights or blustery rains add a nasty bite to the cold.

No doubt the measures have also been tabled with an eye to parliamentary elections, which take place in May 2006.