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30 May, 2024
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Government unveils inflation relief plan for October's end

Green tax on fuels in the works

Newsroom / CNA

At the end of October, the government is expected to announce measures to alleviate the impact of inflation, while at the beginning of 2024 the government plans to implement the new green tax on fuels, together with compensatory measures, said the Minister of Finance, Makis Keravnos, while handing over the 2024 state budget to the President of the Parliament, Annita Demetriou.

"I am handing you the first budget of the government of Nikos Christodoulides. It is a surplus budget, which should help us keep our economy on a sustainable and developmental path", the Minister told the President of the House of Representatives.

As he noted, the budget includes increased social and developmental expenditures, "so that we can implement development projects, which will ensure the sustainable course of our economy and also our obligations towards our social partners, the European Commission."

He also said that the budget was prepared, while taking into account the economic uncertainty in the EU today. "I am sure that it will be a budget that will contribute to further addressing the economic and social problems", he added.

Asked about the implementation of green taxation on petroleum products, he said that the green transition is one of the government's priorities and many individual items related to the green transition are included in the budget and the Resilience and Recovery Plan.

Concerning the new green tax, he noted that the University of Cyprus is tasked with preparing a study on the new tax reform, and green taxation will be one of the first deliverables towards the end of the year, along with offset measures. The new taxation and the measures will be implemented early 2024, he added.

The Minister was also asked about the implementation of inflation relief measures and said that by the end of October "we hope that we will be ready to announce them."

For her part, the House President assured that the House of Representatives will fulfill its role to the fullest. "The voting of the budget is the supreme legislative act", she said, noting that the relevant parliamentary committee, the Finance Committee, is already working diligently in this direction.

She noted that the debate and the voting of the budget will be completed around mid-December.

"The main issue is to maintain financial stability, a targeted economic policy, to be able to keep the stable course of the economy that we so need, in an admittedly difficult politically and economically period, not only for Cyprus, but also for Europe and for the whole world", noted Demetriou.

Responding to when the budget discussion is expected to begin in the relevant Finance Committee, the House President stated that the discussion begins immediately.

Cyprus  |  economy  |  government  |  inflation

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