Cyprus needs substantive support policies rather than fragmented measures to address the rising cost of living, PEO said in a statement on Tuesday.
The trade union said workers and vulnerable households are facing a new wave of price increases, which it linked to the US-Israel attack on Iran, with higher costs for petrol, fuel, basic goods and electricity.
PEO said the situation is deepening social inequalities and placing further pressure on living standards for the majority of society. It argued that the measures currently being implemented by the government are inadequate and do not respond to the real needs of households.
According to the union, effective and structural interventions are needed to support family income and ease pressure on household budgets. It also called for measures to reduce what it described as unfair and across-the-board taxation.
PEO said it has submitted proposals in recent years for a permanent reduction of VAT on electricity to 5%, the abolition of double taxation on fuel, automatic inclusion of eligible consumers in the Electricity Authority of Cyprus’ special tariff, increases in social benefits and their indexation to inflation, particularly the Guaranteed Minimum Income, as well as an extraordinary grant for low-income pensioners.
The union also called for the taxation of large wealth and excess profits, with the funds used for housing policy, social protection measures and efforts to tackle energy poverty.
At the same time, PEO said that, amid prolonged price pressures, stronger market controls are needed to prevent profiteering. It said recent increases in fuel and basic consumer goods make it necessary to assess the use of price caps to provide meaningful protection for consumers.
The union also expressed concern over the sharp rise in the sale price of liquefied petroleum gas, saying the framework for price monitoring should be clarified and strengthened.
Regarding the operation of the e-Kalathi platform, PEO said price transparency is positive, but that the platform alone is not enough to contain the cost of living or protect consumers from the price pressures continuing to affect Cypriot society.
Source: CNA
