Nicosia, Cyprus. The Cyprus Consumers Union called on the public to support proposed measures aimed at tackling rising fuel and food prices, saying households and small businesses are facing growing financial pressure.
Ten recommendations and tax proposals
The union said immediate action is needed and set out ten recommendations, including reducing VAT on electricity to 5 per cent and abolishing VAT on emissions. It also called for measures to prevent increases in lending interest rates and for their suspension, as well as a halt to extraordinary taxation imposed on households and small enterprises where applicable.
Subsidies and fuel tax measures
The union reiterated its call for a tiered subsidy scheme to offset rising electricity costs for as long as prices remain elevated due to the ongoing war and energy crisis. It urged a significant reduction in excise duties where imposed and the elimination of what it described as double taxation on fuel.
Profit controls and taxation of excess profits
Among the proposals are targeted subsidies for fuel and essential goods, and the taxation of excess profits by renewable energy companies and fuel importers. The union also recommended introducing a cap on profit margins for basic products at both wholesale and retail levels.
Inspections and enforcement against profiteering
The union called for stricter and more frequent market inspections to enhance transparency and prevent profiteering in the way fuel costs are calculated. It also said profiteering should be criminalised by law and enforcement mechanisms strengthened.
Price trends and criticism of responses
According to the union, increases in fuel prices began following a drone incident in Akrotiri and have continued since, drawing comparisons with the spike seen after the outbreak of the war in Ukraine. It said similar trends have been observed for years in fuel and food prices, and that after the start of the war in Ukraine the cost of living rose sharply without meaningful de-escalation, while authorities failed to respond adequately.
The union added that initiatives such as the so-called “e-basket” were implemented without substantial input from retailers, according to traders. It concluded by questioning whether it still makes sense to speculate on when and by how much prices will rise, citing what it described as a persistent upward trend.
Do you support the Cyprus Consumers Union’s proposed measures to address rising fuel and food prices?
