Finance Minister Makis Keravnos assured on Friday that households and businesses would face no significant threats from the impending green taxation, based on economic analyses conducted by the University of Cyprus.
In his remarks on the sidelines of the meeting for the second deliverable on the Integrated Tax Transformation and the progress of its implementation presented by the University of Cyprus, Keravnos noted that the tax reform would be fiscally neutral.
He added that everything was being weighed, both the impacts and the compensatory measures, so that in the end, there is a result that leads to green transition, contributes to improving the perception of environmental protection, takes into account the environment in the production process, and alleviates households from any additional costs.
He explained that according to a model analysed for them, for the most vulnerable households, the cost would be pound 48 per year, without this being predetermined. He added that from this presentation, it b
ecame clear that ‘there will be no serious threats to households and businesses.’
The Minister noted that the main conclusion is that some taxes related to green transition must be introduced. However he said that as revealed by the presentations, the tax burden would be minimal and there would be specific compensatory measures.
Keravnos said that further meetings on the subject will follow and that the programme for tax reform is being followed exactly as planned.
Asked whether the Government was ready for green tax reform in terms of infrastructure and services, the Minister of Finance said that within the Resilience and Recovery Plan, there’s a very large number of projects related to preparation, which facilitate and provide incentives. He added that many projects for green transition were being implemented.
to the period of horizontal measures on fuel prices
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Asked about the one month extension of the reduced tax rate on fuel approved by the Parliament,
Keravnos noted that “the period of horizontal measures was ending,” based on the indications of the European Commission, the International Monetary Fund, and all EU bodies. “As a member state of the EU, we must operate within the European framework,” he emphasised.
He also referred to developments regarding fuel prices in the international market, noting that at the moment Cyprus had some of the lowest prices for both unleaded gasoline and diesel.
“Based on the data so far, horizontal measures must be abolished, and we must remain with targeted measures,” he said.
However, he noted that the issue can be addressed within the framework of green transition with electric cars, hybrid cars, and the generous incentives announced recently by the Government.
Minister Keravnos addressed Parliament’s green light of the abolition if the pound 350 fee for companies and extension of maternity leave, stressing the government’s serious approach to economic matters. He affirmed that all government measures are meticulous
ly planned, citing the balanced budget of the current administration as evidence of its commitment to supporting households and various societal categories, such as large families.
Source: Cyprus News Agency
