The new “green” taxes are unfair and unfair

Statement by AKEL Political Bureau member & Head of Economic Policy Charis Polycarpou

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

Yesterday’s announcements by the Minister of Finance on the imposition of new taxes on fuel and water are once again destructive and unfair, as they place the burden of adaptation to climate change on the middle and low income strata.

At the same time as the N. Christodoulides government has found a way to give away millions of Euros to companies that make exorbitant profits by abolishing the annual tax on companies across the board, it has no hesitation in burdening society with €100 million of new “green’ taxes”. Apparently this is how the Christodoulides government understands its tax policy: Giving away millions to powerful financial interests and passing them on to households and small and medium-sized enterprises.

The government is also being judged for its inability to put forward specific answers on how to support society. While it made sure to be very specific about the taxes it would impose, it did not find a single word to say about the compensatory measures it should take to support the vulnerable groups of the population.

Evidently, the transition to cleaner energy is a one-way process. But before the government puts the onus on households and businesses, it must first take on its own responsibility and move to create infrastructures that offer households and businesses viable alternatives.

Society shouldn’t pay the price for incompetency noted over the last decade.