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The current positions of the opposition parties, DISY and AKEL, contradict basic principles of economic policy. Curbing inflation is achieved by tightening monetary policy and adopting a restrictive fiscal policy, not by adopting reduced taxes that boost consumption and the rate of inflation growth.
The Government's decision to terminate the fuel tax reduction measure was taken on the basis of actual fuel price data, where there has been a marked decrease in fuel prices, compared to the prices that applied both throughout 2022 and from 8/3/2022, the date on which the measure was implemented.
Specifically, the existing prices of fuel with reduced taxes amount to €1.38/l for petrol, €1.41/l for diesel and €0.97/l for heating oil. With the termination of the reduced tax measure, the prices are €1.47/l for petrol, €1.49/l for diesel and €1.04/l for heating oil. These prices are significantly lower than both the maximum prices prevailing throughout 2022 (€1.83/l for petrol, €1.99/l for diesel and €1.52/l for heating oil) and the average prices (for the whole of 2022): €1.54/l for petrol, €1.74/l for diesel and €1.28/l for heating oil and from 8/3/2022 to 31/12/2022: €1.58/l for petrol, €1.82/l for diesel and €1.36/l for heating oil).
In addition to the fuel prices discussed above, the Government's policy of not extending the measure is in line with green transition policies aimed at reducing fuel consumption and decoupling the economy from fossil fuels, as well as encouraging the use of more environmentally friendly means of transport.
In conclusion, social policy is pursued through subsidy policies targeted at households in real need, rather than through blanket measures that reduce consumption taxes, thus benefiting wealthy consumers more.
Finally, safeguarding public revenues and maintaining fiscal discipline are key policies.
(NΓ)
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