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Proposals for a reduced VAT rate on petroleum, fuel, food and medicine do not seem to be responding to the government

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Zero VAT rate on excise duty levied on petroleum products and on the adjustment of the price of fuel, which is included in the final electricity consumption bills of the EAC but also zero VAT rate on non-food delivery periods and provide, inter alia, three bills that were debated Monday in the Parliamentary Committee on Finance.

The discussion of the proposals will continue and will be completed next Monday, after the competent Ministries and services have given written answers to a series of questions posed by members of the Committee, to be taken to the Plenary Session of the Parliament, before the summer holidays./p>

Specifically, the first bill submitted by MPs Alekos Tryfonidis and Michalis Giakoumis on behalf of the Democratic Party concerns the inclusion for a period of six months of the delivery of food and medicine at zero VAT rate and the supply of electricity, restaurant services and catering to the restaurant. VAT of 5% and the imposition of a zero VAT rate for the part of the final electricity consumption bills relating to the cost of purchasing greenhouse gas emission allowances.

For this proposal, a representative of the Ministry of Finance stated that its cost amounts to € 50 million for six months.

The second draft law submitted by AKEL General Secretary Stefanos Stefanou on behalf of the party's parliamentary group concerns the non-imposition of VAT on the excise duty levied on petroleum products. For this proposal the Ministry of Finance was not able to report the cost.

Finally, the third bill submitted by DIKO MPs Nikolas Papadopoulos, Christiana Erotokritou and Chrysis Pantelidis, on behalf of the party's parliamentary group, concerns the inclusion, until the end of 2022, in the zero VAT rate, of the adjustment of the tax adjustment. , which is included in the EAC final electricity bills and includes the percentage of the cost of purchasing greenhouse gas emission allowances, the cost of purchasing fuel and the cost of maintaining strategic stocks.

For this proposal, a representative of YPOIK stated that the cost will amount to 7 million euros per month.

Senior VAT Officer of YPOIK regarding the three draft laws said that in addition to not being in line with the European acquis, they consider that they will influence the fiscal and economic policy of the state, as they do not take into account the fiscal capacity of the state and reduce the available revenues.

He also added that when the reductions are horizontal they do not favor the vulnerable and public revenues are wasted and that is why the position of the Ministry is negative towards the three proposals.

The has already taken targeted measures, has already announced two packages of measures totaling € 300 million.

Added that the previous package of measures in force 2022, had a budget cost of € 45 million for electricity and € 18 million for fuel tax reduction.

With the new proposal promoted by the Government, the budget cost amounts to € 18 million and for the excise tax to € 6 million.

Barley and corn have recently been added to their price cap and a gross profit cap will be imposed soon.

In statements after the meeting of the Finance Committee, the Chairman of the Committee Christiana Erotokritou said that “electricity has become a kind of luxury and can be enjoyed by the highest income groups, millionaires” and added that this finding of DIKO led us to submission of the draft law.

“DIKO seeks to be part of the solution to the problems of Cypriot consumers and Cypriot households,” he said, adding that “we want to help reduce energy costs because it is now unbearable for the average Cypriot consumer and the average Cypriot citizen.”

Ms. Erotokritou said that this has been done again by DIKO with the reduction of VAT on electricity and “where we had the first response from the Government that the reduction of VAT is impossible and inadmissible by the European institutions, in the end they were both permissible and feasible “.

He stated that by reducing the VAT on the cost of pollutants and fuels for the purchase of fuel from the EAC but also on the cost of strategic reserves that the Republic must maintain “we can reduce to a very significant degree the cost of electricity” and expressed the hope that the Government will work together to find solutions to alleviate consumers.

AKEL General Secretary Stefanos Stefanou said that AKEL has submitted a bill to end the double taxation on fuel, ie the termination of the VAT charge on excise duty.

He also stated that another proposal of AKEL that is being discussed in the Trade Committee of the Parliament concerns the reasons for the issuance of a ceiling in relation to fuel and added that the law is different from the other basic goods provided in the law on ceiling version.

He also said that AKEL submitted a bill which was passed in law in relation to the reduction of VAT on electricity and added that it was approved by the vote of all parties except DISY and “unfortunately the President of the Republic has reported it to the Supreme Court.” .

“We have tabled these bills because we have found that the Government does not have the necessary will to work to help address, as far as possible, the wave of precision that exists and is particularly evident in energy issues and this precision is passed on. and in many basic goods with the result that a large part of the household budget is wasting due to the increase in both electricity and fuel and elsewhere “, he added.

Mr. Stefanou said that he found “even today” with the questions of AKEL “this lack of will on the part of the Government” and added that when he asked the competent Ministry “whether he has addressed the EU to claim exemptions or the decision on measures for to address the accuracy of electricity and fuel the answer was no. “

He also said that the Government is constantly putting forward the European acquis at a time when the European acquis and a number of recent EU decisions aimed at helping Member States to address accuracy in basic goods and raw materials, we have seen that The Government has not done anything “and added that AKEL will insist on the bill and” we are waiting for the answers of the Government to a lot of questions we have asked “.

Asked to comment on the position of a representative of YPOIK that with the adoption of the AKEL proposal it will not be possible to close the state balance sheet and that it is outside the European acquis, Mr. Stefanou said that “the European acquis allows in exceptional cases, even “it's the easy answer for the Government to say that this is not provided for by the EU” when the EU itself has taken concrete decisions so that Member States can claim exemptions for to help the economy and society “.

He noted that “EU Member States have made significant exceptions, such as Spain and Portugal, which have exempted energy billing by reducing electricity bills by 40%.” “And that” there is no will of this Government “.

” The only time the Government moved was when we brought the proposal to reduce VAT from 19% to 9% in electricity and the Government claimed that it could not be reduced and when we forced them to do so then they took the opportunity to reduce “, he added.

He stated that “the Government is not willing to control both oligopolies and cartels in the fuel issue and added that AKEL is convinced that there are oligopolies and cartels” and added that while the international price of fuel has been decreasing for the last three months and “the retail fuel price to rise “.

“As soon as the prices increase internationally, the prices in Cyprus increase immediately as if the new cargoes are coming by speedboat. “When fuel prices fall internationally, they are too late to fall in Cyprus as if they were coming in a rowing boat,” he added.

In Italy, corporate profits were taxed at 25% to create a fund that could help vulnerable groups.

Answering a question that a DISY MP demanded the resignation of officials who did not give answers to questions from the opposition parties, Mr. Stefanou said that “we did not ask for the resignation of anyone nor do we bully civil servants”, adding that no practice and approach by AKEL intimidated civil servants as “we respect the rules of Parliament”.

the Ministry concludes every time that there is no scandal and no ceiling is issued “.

Moreover, DIPA MP Alekos Tryfonidis said that the DIPA bill for temporary reductions in zero VAT rate for six months concerns medicines, food, basic necessities, restaurants and food and the reduction of VAT on electricity in 5%.

He stated that special emphasis was placed on double taxation on fuels and the abolition of VAT on the adjustment of fuels in the EAC accounts regarding pollutants.

< p class = "text-paragraph">Mr. Tryfonidis said that he asked for the Government to bring the profit it had next time regarding the issues of the proposal after the price increases to make a match and “we asked for the political heads of the Ministries to appear next time”./p>

Also, the MP of the Movement for Ecological Citizens' Cooperation Stavros Papadouris said that “the unfortunate thing is that we have not yet understood why the VAT service under the new EU directives has not proceeded to the consultation to see in what context we can move” and added that The question arises as to whether these proposals will be constitutional or unconstitutional or referral or reference.

“We hope that this will happen by the next session”, he “People are demanding immediate relaxation measures, not wasting time.”

regarding the legislation of 2018 and added that the auctions concerning the first residence and the small professional roof are running.

“On the other hand, we have the scenario of introducing what we call state “without having information on when it will be implemented”, he stated and added that “we live in a country where the threats come first and after any protection measures of the world”.

Source: KYPE

Source: politis.com.cy

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