THE OPPOSITION yesterday accused the government of transforming social measures to reduce heating fuel prices into an excuse for tax collection, and warned that it would vote against proposals to cut the cost of heating fuel, while simultaneously raising petrol duties.
Speaking to reporters at the House of Representatives yesterday, DISY deputy Lefteris Christophorou said the government was using “alchemistic means” to try and change social measures enjoyed by Cypriot citizens into stealth taxes.
The accusations were later categorically rejected by Government Spokesman Kypros Chrysostomides.
Chrysostomides said the government was trying to find the best possible solution in the face of international fuel price fluctuations and ways in which to implement social policies that would benefit those layers of society most in need of them.
According to DISY’s estimates, based on the fact that annual consumption of heating fuel is approximately 120 million litres, the reduction of five cents per litre of heating fuel will cost the government £6 million. But the government will make £5 million from a proposed two-cent increase in the duty on petrol, based on estimations that the public consumed 250 million litres per year, he said. Additionally, the government would also manage to save £11 million in heating fuel subsidies paid out the previous year and would not be paying this year, resulting in an income in excess of £10 million.
“Essentially, the government with its heating fuel alchemy will profit from the average citizen; not only will the government not give (back any money), but it will take from citizens’ pockets and essentially emerge with a profit,” said Christophorou.
Christophorou, who also chairs the House Commerce Committee, called for a “clear solution” on the heating fuel issue and suggested a reduction in consumption tax in the same way as happened in other European Union countries.
“Under no circumstances will we accept or vote for an increase in price of all other petrol products because of a reduction in heating fuel prices.”
Christoforou said the House Committee had unanimously agreed to send a letter addressed to President Tassos Papadopoulos listing the committee’s views, in light of the Cabinet meeting to discuss the compensation of potato growers today.
Meanwhile, Green party deputy George Perdikis said his party would also oppose the government’s proposal if the government did not use the money gained from petrol increases to act against traffic congestion.
