Does the government actually intend to do anything about the high cost of living? Pay rises are neither edible nor enough

 

Statement by Giorgos Koukoumas, member of the Political Bureau of the Central Committee of AKEL and Member of Parliament

26 September 2026, AKEL CC Press Office, Nicosia

The new wave of price hikes is putting a strain on the vast majority of society, yet the Christodoulides government stands by idly and unconcerned. In 2026, the state collected an additional 200 million euros in revenues through VAT and excise duties, but virtually nothing is being returned to society. In other words, the Cypriot people are paying twice for the high cost of living, yet the government shows no inclination to do anything to support society. Other European countries are taking emergency measures and cutting taxes, but the government is celebrating credit rating upgrades, which, however good they may be, cannot be, nor do they fill a car’s petrol tank.

AKEL is proposing and calling for emergency and targeted support for low and middle-income households in the face of record-breaking fuel price rises. We are calling for the following, for as long as the situation with fuel prices continues:

– a transport allowance for low and middle-income households with children,

– targeted one-off heating support in the run-up to winter, and

– a 50 per cent reduction in road tax for 2027 for the poorest households.

We also reiterate the urgent need to end the double taxation on fuel, to ensure control and transparency in fuel prices and, at the same time, regarding electricity: a permanent 5 per cent VAT rate and the extension of social tariff schemes. AKEL is calling for measures to support society and, at the same time, is pointing out where the money for this will come from: additional revenue from price increases, revenue from pollution charges, taxation of windfall profits, and the introduction of a levy on high-value property.

We will be demonstrating for all of these things – as well as everything else society needs: dignified and fair wages, adequate pensions, affordable housing – this coming Monday, 28 September, at 6.00 pm, outside the Ministry of Finance.

The government must get the message!