Italy introduces tax benefits for the population
Italy has reduced fuel excise taxes by 25 euro cents per liter amid a rapid rise in prices due to the war in Iraq, which has impacted the oil market.
According to RBC-Ukraine, citing the Italian agency ANSA, the corresponding decree was approved by the Italian Council of Ministers on March 18.
Also read: Strikes on the world’s largest LNG facility will trigger the worst scenario in the fuel market, – Bloomberg
How the country supports its population
The government has adopted a package of temporary measures. The main point is the reduction of excise taxes for 20 days:
- gasoline and diesel will become cheaper by 25 euro cents per liter;
- liquefied gas (LPG) – by 12 euro cents per liter.
The total cost to the state will be less than one billion euros. If the price situation does not stabilize, the government is ready to extend the measures.
Support for carriers and fishermen
Additional assistance is provided for two sectors.
Freight carriers will receive a tax discount on the purchase of diesel. The exact percentage will be determined by a separate decision.
Fishing enterprises will have a 20% tax discount on fuel for March, April, and May. The total amount of support is 10 million euros.
Oil companies under increased scrutiny
To prevent speculation, the government has introduced strict monitoring. For three months, oil companies are required to submit their recommended retail prices to the Ministry of Entrepreneurship daily. Violators face a fine of 0.1% of their annual turnover.
In extreme cases, materials will be submitted to the court – “to check for the existence of speculative maneuvers.”
Meanwhile, Germany is preparing to cap fuel prices and fine gas stations hundreds of thousands of euros in response to the sharp rise in gasoline and diesel prices due to the war in Iran.
At the same time, the Ukrainian government has decided not to reduce VAT and excise taxes on fuel, despite the rapid rise in prices at gas stations.
Instead, the government is launching a cashback program for drivers and using the state-owned “Ukrnafta” as leverage on the market.
