The latest reports according to which the government plans to increase the consumer tax on diesel and the VAT on food and medicine by 5% have caused a stir. The report published in newspaper “Phileleftheros” on Friday was denied by the government spokesman on the same day, while the opposition talked about overtaxing of the citizens. The coalition referred to the compatible obligations of Cyprus to the EU.

Speaking at the Parliament yesterday, DISY Vice President, Lefteris Christoforou said that although things for the Cypriot citizens become tougher and tougher every day, the government not only does nothing but is considering imposing new taxes, especially on fuel.

“In a period of economic crisis, in a problematic period for growth, the answer is not the overtaxing of the citizens but the incentives for growth and the cutbacks of the unnecessary expenditure”, he said.

The government’s answer was immediate. Member of AKEL Central Committee, Christos Christoforides talked about “unnecessary uproar in relation to alleged new taxes”.

According to Mr. Christofides, the government spokesman had stated that the “government is not having thoughts for an increase in the price of fuel and food. There are no such thoughts. We have some obligations but not at the current stage”, he said.

Mr. Christofides supported that “it is an ordinary practice of DISY to cause unnecessary stir in order to serve its expediencies, but this practice causes problems to the economy”.

Despite Mr. Christofides’ denial, DIKO MP, Nicholas Papadopoulos said that the increase in fuel prices is something that is being discussed in the past few years and the increase in fuel duties is mostly attributable to the EU remarks.

“Unfortunately, the reason behind those increases is environmental. DIKO believes that this is not a suitable period for an increase in taxes and if there is a way to extend it or cancel it for good, we will support it. However, the indications so far show that the EU insists in the issue’, he concluded.