Staikouras: Fuel subsidies are a targeted measure
“Fuel measures are not horizontal; they target low and middle incomes. They cover 3.1 million vehicle owners out of 3.5 million in total,” Finance Minister Christos Staikouras said on Monday while speaking to public broadcaster ERT1 regarding the requests for either a reduction of the consumption tax on fuel or for a transfer of VAT to a lower rate.
According to the minister, a reduction of the consumption tax by €0.20 would cost €1.5 billion.
“So, we will not take any other support measure or burden the citizens,” he added.
He also stated that the tax revenues from the fuels have increased.
“The state receives them, increases the amount from the taxation of the windfall profits of the energy companies and returns them to the citizens,” the minister explained.
Regarding inflation, the minister said that the difficulties with soaring prices will continue throughout 2022, persist with lesser intensity in 2023 and end at the conclusion of the next year.
He also said that “the government is not a government of handouts, it is a government of reducing taxes and contributions and helping citizens when they need it.”
