Screws tighten with VAT hike

THERE was more misery for consumers yesterday as VAT rose by one percentage point to 18 per cent, bumping up the already high cost of electricity and fuel.
It was the second increase in VAT in 10 months, in line with measures included in a preliminary bailout agreement with international lenders.
In March last year, VAT went up by two percentage points to 17 per cent. It is set to rise to 19 per cent in 2014.
The new rate will affect the price of a number of goods and services including petrol, electricity, telecommunications, alcohol, tobacco, and clothes.
The reduced VAT rates of 5.0 per cent on food and drugs and 8.0 per cent charged by hotels, restaurants and public transport, remain unaffected.

Our View: Wind farms a colossal waste of the taxpayer’s money

CYPRUS has three wind farms, which have taken the lion’s share of the funds levied through our electricity bills for renewable energy sources. Yet Cyprus was never known to have strong winds – it is no Scotland or Germany – and this has been proved by the measurements. Last year our wind farms worked at a paltry 25 per cent of capacity producing 164 MWh of electricity which was a terribly poor return on installations with 133MW capacity.