The Government is announcing new support measures against energy price increases, with the Minister of Finance, Makis Keravnos, pointing to the Council of Ministers on September 30 for decision-making.
Speaking on ANT1's midday show and Nikitas Kyriakou, the minister said that the government is closely monitoring developments and is working on additional measures, which, as he said, will be announced "when deemed appropriate and at the right time". He clarified, however, that there is no final costing yet, as the final decisions have not been made.
Fuel in the frame
With fuel prices putting more and more pressure on consumers, Makis Keravnos indicated that, despite the increases, Cyprus remains, according to the data he cited, the 5th cheapest country in the European Union in gasoline.
"You can imagine where the prices would be if the Government did not take measures," he said, recalling the interventions that are already in force. On September 10, the Council of Ministers extended until November 30 the reduction of the Special Consumption Tax (EFK) by 8.33 cents per liter on gasoline and diesel.
He also left open the possibility of intervention in heating oil, the price of which has reached, as put in the interview, €1.60. "We are monitoring the developments. Fortunately, due to weather conditions, we don't need it yet. When we need it, we will decide," he said.
There are limits on VAT
Regarding electricity, the minister clarified that the Value Added Tax (VAT) cannot be reduced below 5%, citing European regulations. He also rejected criticism of "double taxation" due to the imposition of VAT after consumption taxes, noting that the issue was repeatedly discussed with the European Commission without the possibility of different handling.
He acknowledged that the increased energy costs are diffused into the market and the prices of other products, referring to the existing electricity subsidies and zero VAT on basic items.
"Populism without barriers"
He appeared sharp in the face of the opposition's criticism, speaking of "populism without barriers". He cited the course of the economy and argued that, despite international and geopolitical pressures, Cyprus is in a comparatively good position.
"We have not solved the problems," he admitted, stressing, however, that the goal of economic policy is for the benefits of growth to be passed on to citizens.
