"If we want to talk about a radical change in fuel prices, the Government will have to discuss the issue of taxation again with the parties," said today the Chairman of the Parliamentary Committee on Energy, Trade, Industry and Tourism, Angelos Votsis. VAT data on fuel tax again.
The issue of rising fuel prices and the impact on the economy and citizens in general has been re-discussed today by members of the Commission.
In his statements after the meeting, Mr. Votsis stated that the Commission is examining all the scenarios and all the parameters that determine the price of fuel, adding that "certainly the parameter of the fuel price is 1/3 of the retail price, with the remaining percentage being taxation ".
"It seems that in order for the issue to be resolved definitively, we need to touch on the big issue of taxation," he said, adding that the commission had asked for data again to confirm the possibility of imposing VAT on fuel taxation.
"The Ministry of Finance insists and has submitted a specific directive of the European Commission under which it insists that what is being done is allowed," he said, adding that the Commission has also considered any possibilities to strengthen competition in relation to the creation of low-cost gas stations.
"I would not say that things are very optimistic that prices will fall soon. If we want to talk about a radical change in fuel prices, the Government will have to discuss again with the parties the issue of taxation, which together with VAT amounts to € 0,70 from € 1,20 which is the retail price. sales per liter, "he said.
Asked whether the issue of the allowable profit limit of companies will be considered, Mr. Votsis said that at the moment the allowable profit limit is set at € 0,136 and that this is not a big issue in relation to the reduction of fuel prices. . "It seems that the big problem is taxation," he said.
DISY MP Andreas Kyprianou reiterated that through the discussion he clarified that in essence 1/3 of the retail price of fuel is what has to do with the cost of raw materials and the profit of companies and gas stations. "That is, 2/3 of the costs paid by the consumer are taxes", he explained, adding that nevertheless the taxes in Cyprus are lower than the EU average. "Therefore the price before taxes in Cyprus is higher than the average in the EU, while the price after taxes is lower (than the EU average) ", he said, stating that what needs to be discussed and agreed is the allowable profit margin of companies, which currently ranges at € 0,13 / liter.
He also said that it is funny to talk in Cyprus about free competition in relation to petroleum products, as, as he mentioned, during today's session he clarified that 92% of the quantity imported by the three companies operating in Cyprus is imported from the same refinery, and 93% of service stations are related to these 3 companies.
Therefore, he explained, in order to ensure that there is no speculation and that the Cypriot consumer is supplied with fuel at the right price, it should be agreed at normal levels.
AKEL MP Costas Costa said that during today's meeting the Ministry of Energy unfortunately clarified that it does not want to implement the recommendations of its own study which create conditions of competition, since the Government considers it very difficult to enter the market of new independent gas stations or low cost gas stations.
He also said that the Commission had taken into account the preliminary results of another study according to which the speed of price adjustment up and down is the same and therefore what the Auditor General mentions in his Report is practically not valid.
"Essentially today the Government with what it said considers that there is no problem and that fuel prices in Cyprus are normal and there is no need for the Minister to study the possibility of imposing a ceiling nor to stop the unacceptable phenomenon of VAT imposition and on of the excise tax ", he stated, adding that what was heard today in the Commission by the representatives of the Government causes surprise but also disappointment.
In this context, Mr. Costa criticized the Government "does not have the political will to protect citizens from those who clearly steal them every day" and that "it is not in the mood to clash with established interests to stop mockery and profiteering." .
EDEK MP Elias Myrianthous said that what is proven in practice unfortunately differs from what the study presented to the Commission by the Ministry of Energy and was asked whether this study is correct. He even recalled the conclusions that the PSC has reached from time to time and which speak of manipulation of fuel prices.
Mr Myrianthous said that based on the study presented by the Ministry of Energy, there is a large deviation, up to 25%, from the prices presented as average prices in the EU before the imposition of taxation, indicating that this is exactly where those in charge must explain how these discrepancies are justified.
"Apart from that, there are several other points that need to be clarified. However, the main problem that remains is that in Cyprus there are only three companies that import fuel and this is clearly creating an oligopoly in the fuel market ", he added.
Finally, the MP of the Ecologists 'Movement - Citizens' Cooperation Charalambos Theopemptou stated that the Ministry of Energy tried by presenting various statistics to convince that fuel prices in Cyprus are good, adding that what the Ministry did not try is to explain what it intends to do. to stop having a small monopoly and to have more competitive prices.
"We all know very well what is the effect of fuel prices on the Cypriot economy and therefore I would like the Ministry to make a continuous effort to reduce prices beyond the effort it is making now to convince us that prices are good." , he added.
Source KYPE, sigmalive.com