Green taxation should be postponed

Statement by Christina Nicolaou, Head of Energy and Environment Policy of AKEL

8 March 2024, AKEL C.C. Press Office, Nicosia

While in Europe the energy tax reform is still under consultation, in Cyprus the Christodoulides government appears to be more royal than the king.

Instead of seeking to postpone the imposition of the taxes, which will exert further pressure on society and the economy, it is rushing to push them through without bringing any compensatory measures. The so-called ‘green’ taxes will be a burden on citizens.

AKEL calls on the government not to proceed with the imposition of the taxes, to prolong the implementation of the relief measures beyond the end of March and at the same time to prepare compensatory measures.

The reduction of the VAT rate on electricity from 19% to 9%, the taxation of exorbitant profits in the energy sector, as well as the proper use of the fund from the profits of the auction of pollutants, by allocating the revenues to apply targeted policies, can contribute to and significantly reduce the problem of energy costs without undermining fiscal stability.

The reduction of pollutants and the energy transition cannot and should not come at the expense of society.

08.03.2024

08.03.2024