We respond to price hikes by submitting proposals – not by handing out praise and congratulations

Statement by AKEL C.C Member and MP A.Damianou

4 September 2022, AKEL C.C. Press Office, Nicosia

In the face of the government ruling force’s inaction and refusal to adopt social support measures to confront price hikes and profiteering, AKEL has for some tim3e now tabled measures to protect citizens, lower middle strata, vulnerable groups of the population and small and medium-sized enterprises.

Unfortunately, we came up against the Anastasiades-DISY government’s neoliberal dogmatism. For example, as regards the laws that we passed by a majority in Parliament and which Anastasiades referred [to the Supreme Court], which includes the abolition of double taxation on fuel, the Minister of Finance said that reducing taxes would increase the purchasing power of citizens and households, that consumption would increase and therefore inflation. This statement is an indicative example of its cynicism and social insensitivity.

At a time when the government ruling forces have collected from citizen’s pockets – in the first seven months of 2022 alone – €862m of additional tax revenue due to the price hikes, while by the end of the year they will have collected more than €1bn. The government ruling forces are evidently creating cash financial reserves in view of the upcoming elections.

Tomorrow, the Parliamentary Finance Committee will be debating a new bill AKEL tabled as a Parliamentary Group some time ago, aimed at helping young couples and families to acquire affordable housing, which sets caps on the value of a home so that it is subject to a reduced VAT rate of 5%.

At the same time, we are proceeding to finalise our proposal for the taxation of windfall excess profits as a result of the ongoing price hikes, with the aim of returning the revenues collected to society and the real economy in a targeted way.

This is precisely how AKEL understands the policy of acting for the benefit of the many – not by handing out congratulations, as the government ruling forces are doing, when citizens are being driven to impoverishment and are suffering.