The vote against the PD's return to the horizontal reduction of the VAT rate on electricity by 10% by all parliamentary parties (including the ruling party) was the last and clearest indication that the country is heading towards elections. Certainly the policy of economic bidding before the elections is not a Cypriot phenomenon. But in countries like Cyprus this bidding always starts quite early. And as long as the mind of the executive and the legislature is on the ballot box, the decisions that are taken in most cases are irrational. The recent decision of the Parliament for horizontal and up to newer… reduction by 10% of the VAT rate on electricity consumption in no way solves the problem, since the issue is the carbon dioxide emissions produced by the EAC. They are essentially patches that we make.
At the same time, however, it is not the fault of the taxpayers if for nine years now this state and this government have not diversified the energy mix with renewable energy sources. That is, if again the mechanisms of the state had not worked properly. Even if we accept the argument of some that this reduction should have been targeted according to income criteria in order to strengthen the lower classes, that is, others who have financial strength should pay because the state and the government pursued a short-sighted policy? A policy without a vision for green growth as defined by European rules? The state will lose 75 million euros of state revenue annually, which the competent ministry claims will have a negative budgetary impact. Certainly, the loss of government revenue (especially in such a period of time) is something that no one wants. Like no one, of course, wanted to lose hundreds of millions of euros due to a reduced VAT rate for buying real estate by foreign investors during the “golden” passports because again some people, either intentionally or unintentionally, did not do their job properly. The problem is broader and concerns the vision of those who control our degrees.