Diesel: decree finalised – excise duty cut extended until 10 September
The five-day extension of the 17-cent discount will be funded by the €60.55 million in additional VAT revenue from August
Key points
The interministerial decree issued by the Ministries of the Economy and the Environment has been finalised, extending the 17-cents reduction (14 cents in excise duty and 3 cents in VAT) on diesel until 10 September (compared with the expiry date of the reduction currently in force, which is 5 September). Petrol, however, will continue to be sold at the full price. This reduction is funded by the additional VAT revenue from August, which amounted to 60.55 million euros.
Towards ‘targeted’ aid
The new measure gives the Government and the ruling coalition a few more days to consider any further counter-measures to be implemented in response to rising fuel prices. It is, after all, difficult to imagine that next Thursday – the expiry date of the discount, which is due to be extended shortly – the figures displayed on petrol station price boards will change drastically.
At this stage, yet another across-the-board cut has been ruled out in the discussions taking place between the Government and the ruling coalition. The idea has been shelved due to an obvious lack of resources and growing objections to measures that do not distinguish between those with greater spending power – and therefore less need for publicly funded support – and others.
The knots to untangle
For the time being, however, the idea of ‘targeted aid’ remains a vague catchphrase, yet to be fleshed out. There are various views on the matter within the majority – perhaps too many – and these have yet to be reconciled in the key meetings. Indeed, some proposals seem to be fading away before they have even seen the light of day, such as the one – which has been circulating in recent days within the ruling coalition – to introduce a new tax credit to offset the loss of liquidity for businesses that will bear the financial costs of fuel vouchers issued to employees.
Workers in need of protection
Another issue is defining the group of workers to be protected, which should be identified not only on the basis of income thresholds but also on the basis of the specific circumstances requiring protection.
