The Cyprus Consumers Association called for public support through an announcement on Monday, in which it substantiates the need for measures in response to rising fuel and food prices.
Specifically, it proposes ten measures, including reducing VAT on electricity to five per cent and abolishing it entirely on emissions. At the same time, it calls for preventing increases in lending interest rates, as well as suspending them, and for suspending extraordinary taxes on households and small businesses where these are applied.
It also reiterates its request for a tiered subsidy to offset the increase in electricity costs for as long as prices remain high due to the war and the energy crisis. Furthermore, it calls for a drastic reduction in excise duties where imposed and the abolition of double taxation on fuels.
In addition, it proposes special subsidies for fuel and essential goods, as well as taxation of excess profits of renewable energy companies and fuel importers. It also suggests imposing a cap on profit margins for basic products, both at wholesale and retail level.
It further calls for strict and regular market inspections “to enhance transparency and prevent profiteering in the way fuel costs are calculated,” as it states.
Finally, among its proposals is the legal criminalisation of profiteering, along with strengthening ongoing inspections to combat it.
According to the Cyprus Consumers Association, increases in fuel prices began after a drone crash in Akrotiri and have continued, with comparisons drawn to the situation following the outbreak of the war in Ukraine.
However, similar phenomena have been observed for years, both in fuel and food prices. Indicatively, it is mentioned that after the start of the war in Ukraine, prices surged without any substantial de-escalation since, while there has been insufficient response from the competent authorities. It is also pointed out that “e-basket”, in the view of traders, was implemented without their meaningful participation.
Finally, the question is raised as to whether it still makes sense to examine when and to what extent prices of fuel, food and other consumer goods will increase, given the continuously upward trend. At the same time, a lack of confidence in political or technocratic interventions that could alleviate the burden on citizens is underlined, and the government is urged to immediately implement the above measures as a minimum level of support for consumers.
(Source: CNA)
