Filenews 11 November 2021 - by Eleftheria Paizanos
The opposition parties are ready to overturn the government's decision to reduce VAT from 19% to 5% on electricity bills of only vulnerable households, for a period of six months.
Instead of a targeted tax cut for the 18-19,000 households registered for the vulnerable (08- tariff), the opposition parties want the reduction to be universal, even if it is smaller.
Specifically, the relevant proposal for a law of the opposition provides for the reduction of the VAT rate on electricity from 19% to 9% for all, so that consumers - households and professionals - can meet the increased cost of electricity and contain price increases in other products as well.
A majority was formed in parliament in favour of this regulation, as with the law proposal submitted last week by the General Secretary of AKEL Stefanos Stefanou, the DIKO, EDEK and the Ecologists have been drafted.
That is, apart from the fact that the above parties consent to the proposal, they co-sign it, so as to give a clearer message to the government that they have the upper hand in parliament to shape the policy they want. With the cooperation of the four parties, it is certain that the bill will be approved by the plenum, as it gathers 31 votes, without excluding that more MPs will vote for it.
The ruling party is likely to support the government's decision to reduce 5% only for the vulnerable, while the other two parties, ELAM and DIPA, will shape their stance in the near future, with a more likely scenario to support the opposition's proposal.
On Monday, the bill will be discussed in the House Finance Committee.
