At least 200,000 citizens are below the poverty line – Support measures needed

 

Statements by the General Secretary of AKEL S.Stefanou during his visit to the People’s Solidarity Network

20 April 2022, AKEL C.C. Press Office, Nicosia

This Easter, as every year, we are here to make our own contribution to the effort the People’s Solidarity Network has been making for several years now, providing help to many families and individuals.

Over 400 support packages have been prepared for the Nicosia district alone. More packages will be delivered in the other provinces too. This assistance may not solve the problems thousands of households and fellow citizens are facing, but it does provide some relief for the holiday period.

I’d like to congratulate the People’s Solidarity Network for its practical solidarity and help, which is not limited to the festive season, although the festive season, namely Christmas and Easter, is the focus of its activity. The Network has been able to provide help all through the year on specific occasions and in concrete ways. I would like to congratulate the People’s Network for its work, the protagonists and volunteers who prepare and distribute these packages, without whom this work would really be even more difficult than it is now.

Thousands of people are suffering. The figures show that at least 200,000 people, if not more, are below the poverty line. Inequality in Cyprus is increasing, incomes have fallen, prices have risen sharply and it isn’t just now. The war in Ukraine has of course exacerbated the problem. Price hikes existed before the war, as we have frequently pointed out to the government, which has said that this phenomenon is temporary. Unfortunately, it seems that the phenomenon won’t be passing. It is very likely that there will be stagflation in Cyprus, so it will make the task and lives of thousands of households and people, even more difficult to try to make ends meet every day.

This is precisely why policies are needed which should aim to strengthen the welfare state and provide practical support to society, especially to the vulnerable groups of the population, the low-paid, pensioners on low pensions, young people, all those who really need the support and the warmth of the state to be able to cope.

Measures need to be taken to support all these people in the short and medium term. AKEL has submitted very specific proposals.

The first proposal we have tabled and was indeed passed in Parliament – and unfortunately the President referred it to the Supreme Court – is to reduce the VAT rate from 19% to 9% on electricity. We call on the government to bring back this proposal that was passed in Parliament with just the ruling DISY party rejecting AKEL’s proposal.

Secondly, we have a specific proposal for a law to end the double taxation on fuel. This erroneous policy, which also increases the price of the final product, should be terminated.

Thirdly, the cap that the Minister has the ability to put on both essential goods, as provided for in this law, and on the issue of fuel must be used correctly. And because the fuel law is different – the cap on fuel is different from the law dealing with other basic goods – AKEL has tabled a specific bill proposal for the same criteria to be applied, so that not only does it take into account the profiteering – which in a way the government always says there is no profiteering in fuel so it won’t put a cap – and other criteria that exist in other cases for basic goods.

Namely, when it is judged that it is a difficult period and a cap needs to be put in place to help society and the economy. Right now there is a need for fuel. We call on the government to respond to AKEL’s specific proposals so that in this way we can provide relief as much as possible to the people who are worried and suffering from the shortage of essential goods.