08/11/2004 13:46
The government’s measure for the reduction of the consumer tax on heating oil through the increase in the consumer tax on oil is socially unwise, taking into account the latest census carried out by the Statistics Service in 2001. Although the enforcement of the measure will benefit 40.3% of the total population, those who will be mostly benefited by the measures are big house owners.
Who is benefited?
Despite the fact that central heating has become more and more popular in the Cypriot households in the past few years with the total number reaching 60.6 thousand (217,000 persons), 92.5% of these households have more than 6 rooms. On the other hand, households that have central heating and 5 or fewer rooms hardly reach 7.5%. This shows that the majority of the central heating users are comfortably off.
Although the number of households with central heating corresponds to 31.8% of the total households, 38.8% of the households with central heating belong to their owners. On the other hand, only 15.3% of the households that rent a house have central heating.
In Cyprus, 19.2 thousand households (or 51.7 thousand persons) use oil stoves. 61.2% of the oil stove users have 5-room houses (or fewer) and 38.7% have houses with more than 6 rooms. It seems that oil stoves are widely used by the lower social groups due to their low cost.
It is worth noting that the increase in the consumer tax on oil together with the abolition of the PNBS system has pushed the price of oil up. Although until 1999 the price of oil reached 15 cents per litre, the cost for the central heating of oil stove users has now trebled. The cost is higher for those who use power and gas as well.
Who is not?
The gas, the price of which has doubled in the past few years, is quite popular in Cyprus. 74.2 thousand households (210.2 thousand persons) use gas heating. 66.4% of them live in 5-room houses (or fewer) and the remaining percentage lives in larger houses.
The government’s proposal to increase the consumer tax on oil and reduce the consumer tax on heating oil is expected to affect negatively the majority of the Cyprus population, those who haven’t got either central heating or oil stoves. As for those who use electrical and gas stoves, the cost will be double (increase in energy cost and tax on oil).
Who is benefited?
Despite the fact that central heating has become more and more popular in the Cypriot households in the past few years with the total number reaching 60.6 thousand (217,000 persons), 92.5% of these households have more than 6 rooms. On the other hand, households that have central heating and 5 or fewer rooms hardly reach 7.5%. This shows that the majority of the central heating users are comfortably off.
Although the number of households with central heating corresponds to 31.8% of the total households, 38.8% of the households with central heating belong to their owners. On the other hand, only 15.3% of the households that rent a house have central heating.
In Cyprus, 19.2 thousand households (or 51.7 thousand persons) use oil stoves. 61.2% of the oil stove users have 5-room houses (or fewer) and 38.7% have houses with more than 6 rooms. It seems that oil stoves are widely used by the lower social groups due to their low cost.
It is worth noting that the increase in the consumer tax on oil together with the abolition of the PNBS system has pushed the price of oil up. Although until 1999 the price of oil reached 15 cents per litre, the cost for the central heating of oil stove users has now trebled. The cost is higher for those who use power and gas as well.
Who is not?
The gas, the price of which has doubled in the past few years, is quite popular in Cyprus. 74.2 thousand households (210.2 thousand persons) use gas heating. 66.4% of them live in 5-room houses (or fewer) and the remaining percentage lives in larger houses.
The government’s proposal to increase the consumer tax on oil and reduce the consumer tax on heating oil is expected to affect negatively the majority of the Cyprus population, those who haven’t got either central heating or oil stoves. As for those who use electrical and gas stoves, the cost will be double (increase in energy cost and tax on oil).