COMMERCE Minister George Lillikas yesterday announced a raft of price changes caused by Cyprus’ accession to the EU a week ago.
Down come the price of imported alcoholic beverages, but up go local drinks, cigarettes, books, children’s clothes and new homes, to name but a few.
Addressing a news conference yesterday, Lillikas said the prices he was quoting were rounded off and theoretical.
The price of Zivania is set to rise from £3.27 to £3.75, local brandy will go up from £2.43 to £4.95, while the price of cigarettes is set to rise by up to 10 cents a packet of 20.
According to the new regime, expect rises in the price of local newspapers, magazines and books to rise by six cents, while foreign magazines will increase by 15 cents.
Lillikas also revealed that the price of petrol was set to rise due to the rise in crude oil prices and in order to cover a £6 million deficit on fuel.
But on the other hand most imported alcoholic drinks, except for some reason Dutch beer, are expected to get significantly cheaper.
According to the changes, the price of a bottle of whisky is set to plummet from £12.50 to £7.50 and wine imported from Greece will be reduced by 75 cents. Commandaria will be cheaper by 55 cents and soft drink prices are set to drop by three cents.
The VAT Services yesterday also announced that as of May 1, VAT at the full rate of 15 per cent had been imposed on new homes and children’s shoes and clothes.
According to a list made public yesterday, five per cent VAT will be added on tap water, books, newspapers, magazines and other printed documents, gas, and public transport on rural and urban buses. Five per cent VAT will also be levied on equipment for the handicapped, ice cream and similar products (though import duties on ice cream are scrapped), salted products and nuts.
The new rules say 15 per cent will be imposed on homes for which the application for a building permit was handed in after May 1, but only five per cent will be imposed on first homes.
Meanwhile, taxi union spokesman Kyriacos Moustakas yesterday revealed that the Communications Ministry and taxi associations were working together in an effort to reduce taxi fares.
Speaking to the Cyprus Mail yesterday, Moustakas said discussions began after acting Communications Minister George Lillikas said fares had increased dramatically and had to be brought down to a more reasonable level.
“Around 12 pages of suggestions by the government and us were exchanged at our first meeting yesterday, and we will discuss them in the next meeting next week,” he said.
Moustakas said POVEK’s suggestions included increasing the period after which taxi drivers could sell their duty free cars from eight to 10 years, scrapping safari licences and revoking new taxi licences issued by former Communications Minister Averoff Neophytou.
Taxi drivers also want to be exempt from VAT and for the government to subsidise their diesel.
