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21 May, 2024
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Fuel tax cut to aid low incomes

Group advocates for lower fuel taxes, citing household expenses

Newsroom / CNA

The association called "Equality" is requesting a reduction in fuel taxes through a letter addressed to the Minister of Finance, Makis Keravnos.

Among the reasons it supports its request, it mentions that fuels pose a significant expense for households, as they are used for transportation and heating. With high prices, the available income for households is reduced for other needs.

Reducing taxes will lead to lower prices and increased disposable income, adds the association in the letter it has made public.

It expresses the view that lowering fuel prices will boost business competitiveness, as lower fuel costs result in reduced production and transportation expenses. Consequently, businesses can offer more competitive prices to consumers.

It further states that this will contribute to enhancing tourism, as cheaper fuels mean lower travel expenses for tourists, increasing the country's attractiveness as a tourist destination.

Additionally, it argues that tax reduction will help contain inflation. By lowering taxes, inflationary pressures decrease, and consumers' purchasing power is maintained.

The association also emphasizes that reducing fuel taxes will promote social justice. High fuel prices disproportionately burden low incomes, causing vulnerable households to spend a larger share of their income on fuel.

Among other things, it notes that this approach will alleviate urban congestion. The high cost of commuting from rural areas to cities for work prompts workers to leave rural areas, resulting in rural decline.

Lastly, it points out that lower prices in the occupied territories serve as an incentive for fuel purchases there, leading to decreased tax revenues for the Republic of Cyprus. This strengthens the economy of the pseudo-state and undermines "security and stability."

[This article was translated from its Greek original]

Cyprus  |  fuel  |  gas  |  petrol  |  income  |  economy  |  price

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