Statement by Eleni Mavrou, AKEL Political Bureau member on the increased fiscal surplus
The state surpluses due to expensiveness/price hikes should be returned to society
8 April 2023, AKEL C.C. Press Office, Nicosia
Yesterday’s figures released by the Statistical Office reveal a surplus of €363 million in public finances for the period January – February 2023. This surplus evidently has nothing to do with the government’s handling of public finances, but rather with increased revenues drawn from taxes due to the increase in the number of tax revenues because of expensiveness/price hikes. It should be pointed out that in March inflation rose to 5.8% and price hikes continue to rise sharply on basic necessities, especially electricity.
For that reason, the demand that at least part of this surplus should be returned to society, particularly to the most vulnerable groups of the population, is completely justified.
AKEL has also stressed during the recent debate in Parliament the need to continue subsidising electricity and to impose a reduced tax rate on petroleum products. Both measures expire soon without the government having yet clarified its own intentions.
At the same time, AKEL reiterates its proposals for additional measures to provide support towards households and businesses, such as the abolition of the double taxation on petroleum products and the reduction of taxes on essential goods.
We recall that two AKEL draft bills are pending for the taxation of exorbitant profits in the energy sector in order to give the state another tool to support households and businesses that are being brought to their knees due to expensiveness and price hikes. A proposal that everyone internationally recognises should be promoted.
Society is no longer content with…government expressions of sympathy and understanding. It demands that specific measures should be taken and it is the state’s duty to move in this direction.

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