The Cyprus Consumers Association has called on the government to introduce a package of measures to support citizens, citing continued increases in fuel and food prices. In a statement, the association outlines ten proposals aimed at easing the financial pressure on households and small businesses.
Proposed tax reductions and subsidies
Among the measures proposed is the reduction of VAT on electricity to 5% and the complete abolition of VAT on emissions.
The association also calls for the prevention of increases in lending interest rates, as well as their suspension, together with the suspension of extraordinary taxation applied to households and small businesses.
It further reiterates its request for a graduated subsidy to offset increases in electricity costs for as long as prices remain high due to the war and the ongoing energy crisis.
In addition, the association calls for a substantial reduction in excise duty where it is imposed and the abolition of double taxation on fuel.
Market controls and taxation of excess profits
The Consumers Association also proposes targeted subsidies for fuel and basic goods.
It further calls for the taxation of excess profits generated by renewable energy companies and fuel importers.
Another proposal is the introduction of a cap on profit margins for essential products at both wholesale and retail levels.
The association also urges strict and regular market inspections “to strengthen transparency and prevent profiteering in the calculation of fuel costs”.
Call for legal measures against profiteering
Among the proposals is the criminalisation of profiteering through legislation, together with the strengthening of ongoing inspections to combat such practices.
According to the association, increases in fuel prices began following the drone crash in Akrotiri and have continued since then, drawing comparisons with the price surge that followed the outbreak of the war in Ukraine.
It notes, however, that similar phenomena have been observed for years in both fuel and food markets. The statement highlights that after the start of the war in Ukraine, prices surged without significant decline since, while the response by competent authorities was considered insufficient.
It is also noted that the so-called “e-basket”, according to traders, was implemented without their meaningful participation.
The association concludes by questioning whether it still makes sense to examine when and to what extent prices will increase for fuel, food and other consumer goods, given the continuously upward trend. It also underlines a lack of trust in political or technocratic interventions that could ease the burden on citizens and calls on the government to implement the proposed measures immediately as a minimum form of support for consumers.