EU decisions on VAT refute the government’s narrative on electricity price

 

Statement by AKEL Political Bureau member Haris Polycarpou

8 December 2021, AKEL C.C. Press Office, Nicosia

Yesterday’s decisions approved by the European Union on VAT refute the narrative that the government tried to promote for the reduction of VAT on electricity.

At the same time as the government is trying to limit the duration of the VAT reduction on electricity, the European Union is taking decisions for permanent reductions in VAT rates, including on essential goods and products related to public health.

The government must realise that the European Union cannot, on the one hand, give tools to member states and, on the other hand, it itself put obstacles and restrictions on the reduction of VAT on electricity.

Society is calling on the government – which has the main responsibility – to bring forward a comprehensive plan to tackle the issue of price hikes and to end the flippancy and sloppiness with which it is handling these issues.