Development Ministry urges freeze on fuel tax

The Development Ministry is pushing for fuel tax not to be raised in order to avoid further rises in the costs of goods and services.

Speaking to journalists on Thursday, the ministry?s general secretary for trade Stefanos Komninos said that discussions about fuel tax are taking place with the Finance Ministry.

?If you keep putting up taxes, it causes a problem with the country?s competitiveness, slows down growth and has a serious impact on the demand for products and on prices,? he said.

Komninos said that fuel consumption had declined by 20 percent over the last two years. The drop in heating oil being used has been even higher, he said.

The gas station owners union (POPEK) has proposed that the government scrap the value added tax that is charged on special consumption tax for gasoline. POPEK says this would reduce the cost of gasoline, which is edging towards 2 euros per liter, by about 15 cents per liter.

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