Finance Minister Christos Staikouras announced details of four new measures to support households and businesses. Three-month package total cost of 1.1 billion euros for approximately 3,200,000 people includes a lump sum of 200 euros, a subsidy for fuel and electricity bills.
According to the minister, the 3-pillar package aims to strengthen mainly low-income and middle-class households, as well as small businesses.
“If we add to this the measures that are already being discussed in Parliament (the ENFIA property tax reduction, the subsidy for agricultural fuel, fertilizers, etc.), then the cost will be 1.7 billion euros,” said the finance minister.
Support measures and how they are implemented in real life:
1 measure – subsidies for electricity and gas
- The electricity subsidy is being increased, the natural gas subsidy is being maintained, and companies are being subsidized. The cost for April is 640 million euros.
- The subsidy will be provided to all residents, regardless of annual income, square meters and electricity supplier, with consumption up to 300kWh.
- The amount of subsidies will increase from 40 euros in March to 72 euros.
- For businesses, the subsidy in April will amount to 130 euros per MWh, as well as a special subsidy for bakeries, small and medium-sized businesses.
- The natural gas subsidy will be €20 for households and €20 per MWh for businesses.
For those who did not submit a benefit number last year and will do so now, they will receive the benefit retroactively from January.
IN business accounts the subsidy will be provided retroactively for January, February and March in the form of 3 monthly payments.
2nd measure – Easter donations
Financial support to cover part of increased commodity and energy prices for 1.4 million vulnerable people ahead of Easter:
- In April, an additional 1.5 part of the child allowance was assigned.
- An allowance of 200 euros has been provided to 677,000 low-income pensioners.
- A €200 benefit has been provided to 35,000 uninsured older people.
- Disabled persons receive an allowance of 200 euros.
- Guaranteed minimum income recipients receive a double payment.
As a result, double payout will be given 240,000 recipients minimum guaranteed income.
The total cost of assistance will be 324 million euros.
subsidy in the amount 20 euros will be given households for natural gas and an additional 20 euro for electricity. For enterprises, the subsidy for natural gas will amount to 20 euros per MWh of the total monthly consumption.
3 measure – fuel for cars:
Fuel card (fuel subsidy) for unleaded gasoline and diesel fuel, will be issued in April to cover the increased cost of three months of consumption (April, May and June) for individuals (including self-employed) with the following conditions:
- Individuals (including self-employed), tax residents of Greece, with declared family income are eligible to participate up to 30,000 euros.
- The subsidy will be given to in the form of an electronic cardwhich can be used at gas stations, and for our fellow citizens who cannot use smartphonethe amount will be credited to the bank account – their choice.
- To get help individual will announce on the respective platform in gov.gr the transport meansfor which it gets assistance, and on which he should have a percentage joint ownership or a long term lease.
- Each vehicle can be declared by one individual, and each natural person may declare only one vehicle. A prerequisite for the vehicle to be in circulation and it was insured.
- Subsidy (on the automobile) is 60 liters of fuel per month and is equal to 22 cents per liter. Thus, the subsidy for three months is 40 euros.
- Especially for citizenshaving main place of residence on the islands: a subsidy for three months is 50 euros (a subsidy of 28 cents per litre).
- For motorcycle owners the subsidy is 30 euros on the mainland and 35 euros on the islands.
- There are about 3 million people who own at least one car and declare a family income of up to 30,000 euros.
- It is noted that the average national consumption per taxpayer (owning a car) is estimated at about 54 liters per month.
- The amount of the above subsidy is estimated at 130 million euros.
- From 2.10 euros for gasoline on the mainland, the consumer pays for gasoline, for 60 liters of consumption per month, at a price of 1.88 euros.
- At 2.20 euros for gasoline on the mainland, the consumer pays for gasoline, for 60 liters of consumption per month, at a price of 1.98 euros.
- Buying diesel fuel on the mainland for 1.95 euros, the consumer pays for 60 liters of consumption per month at a price of 1.73 euros.
- Buying gasoline for 2.25 euros, a resident of the islands pays for 60 liters of consumption per month at a price of 1.97 euros.
It is also subsidized from the state budget selling price diesel fuel on the Aprilconsumed in the domestic market. The subsidy is 12 cents per liter at source, so the final price benefit (including VAT) is 15 cents per liter. Thus, the final sale price of diesel fuel, based on current prices, is expected to decrease from 2 to 1.85 euros per liter. Cost control, especially for diesel fuel, is considered essential to contain prices in the supply chain. The cost is estimated at around 23 million euros as of April.
In addition, during April, taxi services (KAD 49.32 and KAD 52.21.29.01) special compensation in the amount of 200 euros to cover increased fuel costs in March and April. This concerns 28,600 taxi operators and drivers, at a cost of 5.7 million euros.
In real life, the monthly subsidy will be about 12 euro per car (one car per family) and can be obtained either through an online platform or through a special fuel subscription. The platform is scheduled to open in April. Those who do not use a smartphone can reserve the amount in their bank account.
4 measure – returnable deposit and ENFIA:
The maturity of all repayable, advances increased. Interest-free installment from 60 to 96 tranches. The 15% discount remains for a one-time return.
ENFIA will be reduced.
From this year, individuals will continuously pay a total of 920 million euros less than in 2018. Eight out of ten citizens who will pay property taxes in 2022, mostly the middle class, will permanently see an even greater decline in ENFIA, boosting their disposable income.
Read more in the post: New Greece Property Tax Bill (ENFIA), Promises Significant Rebates
As noted by Mr. Staikouras, a draft law on permanent decline ENFIA on the 350 million euros and permanent reduction of VAT on fertilizers from 13% to 6%. The same bill includes the return of TFC diesel fuel farmers.
It is recalled that the following measures have been taken for the primary sector and containment of food prices, with a total cost of 200 million euros, for 2022:
- Subsidy farmers for an increase in the cost of feed of 4% of total production revenue in the second half of 2021 in the amount of 43 million euros.
- Return EFK diesel fuel farmers by 2022 at a cost of 60 million euros.
- Constant decline VAT on fertilizers from 13% to 6%. Cost: 20 million euros per year.
- Constant decline VAT for feed from 13% to 6% from October 1, 2021. Cost: 15 million euros per year.
- Coating 80% point on adjustment tariffs for electricity for agricultural needs, for the period from August to December 2021. The cost is 50 million euros for 2022.
- Transport equivalent includes transportation of animal feed to Crete for 2022 at a cost of 8 million euros.
- The Aegean Small Islands program for the transport of animal feed has been increased by 50% and will cost 3.5 million euros.
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