Filenews 29 March 2024 - by Eleftheria Paizanou
Through the granting of additional allowances (from April until the end of June) to a portion of citizens who fall into vulnerable groups, the state will attempt to balance the economic impact that citizens will have from the end of the horizontal measure of reducing excise duty on fuel.
From April 1, the price of motor fuel will increase by 8.33 cents and diesel by 6.39 cents per liter.
Yesterday, the Council of Ministers approved five measures, worth €35 million, two of which are a continuation of previous packages of anti-precision separatism.
Specifically:
> A total of 5,562 single-parent families will receive one-off support of €2.1 million. The measure concerns single-parent families with an annual income of up to €19,500 and a maximum deposit amount of €10,000. The one-off support will be €100 per month (for three months) for the first child and the amount will increase by €50 for each additional child, up to a maximum of €250. For more than four dependent children, an additional amount of €100 will be granted.
> One-off support to 10,233 families (for April, May and June), based on income criteria, with an amount of €1.5 million. per month and a total of €4.5 million. The measure will be addressed to families with an annual income of up to €25,000 and maximum deposits of €15,000. There will be a one-off support of €100 for the first child, increased by €50 for each additional child, up to a maximum of €250. In addition to the four dependent children, an additional amount of €100 will be given.
> One-off support to 18,000 households, receiving EIO and child benefit. They will receive emergency support of €100 for April, May and June. The total cost will be €5.4 million.
> Provision of one-off support of €100 per month (for April to June) to 4,200 recipients of mobility allowance from the Department of Social Inclusion of People with Disabilities, at a total cost of €1.3 million.
> Concession to 28,000 low-income pensioners, who are not UGS recipients, of a lump sum, with a total cost of €8.4 million. Each low-income pensioner will receive €100 per month (for April, May, June).
The measures extended
At the same time, two measures already in force are extended:
> Extension of the graduated subsidy for the increase in the price of electricity for the billed months of May and June, for bills with metering until June 30, 2024. The cost of the continuation of the measure is estimated at €8 million. The increase subsidy for vulnerable households will be 100%, while for the rest it will be calculated on the basis of electricity consumption.
> Extension until the end of June of zero VAT on basic items, at a cost of €6 million. The measure of zero VAT on bread, milk, eggs, baby food, products for feminine hygiene and protection, baby diapers, adult diapers and sugar expires at the end of April. The meat and vegetables measure expires at the end of May.
The Ministry of Finance states that it will review developments in energy product prices and accordingly will refer the issue back to the Council of Ministers.
In total, the Christodoulides Government, since taking office, has adopted measures against high prices totalling €291 million. The first package of measures last October was €196 million, the second package in February was €60 million. and yesterday's is worth €35 million.
The "big" and the PEO-SEK guilds were not satisfied
DISY and AKEL, in their announcements after the publication of the decisions of the Minister, described the measures as insufficient and pointed out negative consequences that will be caused by the reintroduction of the fuel consumption tax.
DISY argued that some categories of vulnerable households, such as families with three and many children, are excluded from the measures. According to Onoufrios Koullas, the reintroduction of taxation on fuel will lead to price increases in goods. "We underline that in the current conditions, which are at the same time a period of particularly high interest rates, the Government fails to understand that the middle class and small and medium-sized enterprises are proportionately affected by them," he added.
For its part, AKEL argued that the measures are not capable of dealing with the wave of high prices and that "the Christodoulides government is again proving inferior to the circumstances". In a statement, he said that "ending the fuel subsidy is hasty and incomprehensible" and "leaves consumers unprotected, at a time when new increases as well as so-called green taxes are coming." He also pointed out that high prices are not addressed by excluding the middle class and low-paid workers.
DIKO, responding to AKEL, said that it "did not expect anything different from the populist approach, which completely ignores our country's obligations towards the EU and the fiscal parameters." He also described DISY's announcement as "populist", citing earlier statements by former Finance Minister Kon. Petrides, who had described the abolition of the horizontal measure of reducing the tax on fuel as correct.
And the guilds
PEO and SEK were on the same wavelength. PEO pointed out that "the measures exclude large groups of the population, such as middle income strata, young low-paid couples who do not receive any social benefits." PEO expressed the position that the announced measures "confirm that the Government approaches social policy with a perception of state charity".
The five measures do not meet the real needs of society as a whole, SEK said, expressing dislike. In particular, it states that the measure to extend the electricity subsidy for the months of May – June is an approach that "will not have a substantial benefit to consumers" since consumption is limited during this period and expresses the position that it would be more useful for the subsidy to apply to the summer months as well.
President for social groceries
"The government will not follow policies that led Cyprus to social groceries," said President of the Republic, Nikos Christodoulides, when asked to comment on opposition parties' reactions to the measures. He added that "the measures are within the framework of a holistic approach that this Government has been following very responsibly from the beginning: subsidy policy through measures, wage increase through specific decisions and tackling energy costs through plans, because this is where the increase in prices comes from."
"Inexpensive, nice statements and policies that led Cyprus to social groceries, this government will not follow," he said.
