Day: August 16, 2022

Cyprus maintains a very low VAT rate and lower consumption taxes on fuel compared to Germany and other EU countries, Minister of Finance Constantinos Petrides notes in a written statement.

In his statement, issued Monday, the Minister gives clarifications regarding the letter of the German Minister of Finance to EU Economy Commissioner Paolo Gentiloni for the non-imposition of VAT on the new German levy that will be imposed on natural gas for all consumers, as well as regarding statements by Cypriot politicians, including the President of the Parliamentary Committee on Finance and Budget.

The Minister points out that the request of the German government is not related to the Cypriot opposition’s proposals to not impose a VAT on consumption tax or on the fuel adjustment clause on the Electricity Authority Cyprus’ tariffs, adding that on the contrary, the German government imposes VAT on consumption tax and on the final price of electricity consumption in accordance with EU legislation.

Noting that the government of Cyprus has not imposed additional levy or other taxation on consumers, he stresses inter alia that the government has taken a number of measures to ensure the disposable income of households in view of the increased energy prices, by reducing VAT from 19% to 9% for all households and from 19% to 5% for vulnerable households.

Petrides recalls that Cyprus maintains a very low VAT rate and lower consumption taxes on fuel compared to Germany and other EU countries, while unlike other European countries the government does not intend to impose additional taxes or levy on consumers.

“On the contrary, we have proved that our policies during this difficult time are focused on the support of the society with priority given to the vulnerable citizens, with a relative budgetary cost of more than 350 million euro until now”, the Minister says.

Source: Cyprus News Agency

The latest estimates issued by Eurostat show that international trade in goods deficits were at 24.6 billion euro for the eurozone and at 34.0 billion euro for the EU in June 2022.

In June 2022, compared with June 2021, all member states registered a large increase in extra-EU exports except Cyprus (a 12.2% decrease) and Denmark (2.4% decrease).

The highest increases were registered in Slovenia (109.4% increase) and Greece (75.6% increase).

Also, all member states registered large increases in extra-EU imports, except Latvia (24.8% decrease) and Luxembourg (20.1% decrease).

The highest increases were observed in Cyprus (130.1% increase) and Greece (100.4% increase).

The first estimate for euro area exports of goods to the rest of the world in June 2022 was 252.2 billion euro, an increase of 20.1% compared with June 2021 (210.0 bn).

Imports from the rest of the world stood at 276.8 bn euro, a rise of 43.5% compared with June 2021 (192.9 bn euro).

As a result, the euro area recorded a 24.6 bn euro deficit in trade in goods with the rest of the world in June 2022, compared with a surplus of 17.2 bn euro in June 2021.

Intra-euro area trade rose to 236.4 bn euro in June 2022, up by 24.2% compared with June 2021.

In January to June 2022, euro area exports of goods to the rest of the world rose to 1393.1 bn eitp (an increase of 18.7% compared with January-June 2021), and imports rose to 1533.6 bn euro (an increase of 43.0% compared with January-June 2021).

As a result the euro area recorded a deficit of 140.4 bn euro, compared with a surplus of 100.6 bn euro in January-June 2021.

Intra-euro area trade rose to 1328.5 bn euro in January-June 2022, up by 26.3% compared with January-June 2021.

The first estimate for extra-EU exports of goods in June 2022 was 224.9 billion euro, up by 19.4% compared with June 2021 (188.3 bn euro).

Imports from the rest of the world stood at 258.9 bn euro, up by 48.5% compared with June 2021 (174.3 bn euro).

As a result, the EU recorded a 34.0 bn euro deficit in trade in goods with the rest of the world in June 2022, compared with a surplus of 14.0 bn euro in June 2021.

Intra-EU trade rose to 366.6 bn euro in June 2022, up by 23.0% compared with June 2021.

In January to June 2022, extra-EU exports of goods rose to 1237.3 bn euro (an increase of 17.9% compared with January-June 2021), and imports rose to 1438.0 bn euro (an increase of 48.9% compared with January-June 2021).

As a result, the EU recorded a deficit of 200.7 bn euro, compared with a surplus of 83.2 bn euro in January-June 2021.

Intra-EU trade rose to 2064.5 bn euro in January-June 2022, up by 24.3% compared with January-June 2021.

EU trade deficit in energy increases

———————————–

In the first six months of 2022, the highest increases were recorded in the imports and, with a lower value, exports of energy, leading to a significant increase in the EU trade deficit in energy (a 290.8 bn euro deficit in January-June 2022 compared with -a 105.6 bn deficit in January-June 2021)

In the first six months of 2022, the exports of goods to the United States recorded the highest increase (29.1%), related mainly to the chemicals, and machinery and vehicles.

In the same period, the imports from Norway recorded the highest increase (142.7%), related mainly to energy goods.

Source: Cyprus News Agency