In the energy decree approved by Palazzo Chigi comes the reduction of manufacturing and consumption taxes on the main fuels, with a duration of 30 days
Here comes the long-awaited intervention of the Government to combat expensive fuels, with a measure that leads to the reduction of the final price of gasoline and diesel by 25 cents per liter, with a duration of 30 days. The decree with the urgent measures to counter the economic and humanitarian effects of the Ukrainian crisis thus adopts a mechanism that provides for the cut in the excise duty on fuels by 20 cents, and which therefore also leads to the simultaneous reduction in VAT.
Mobile excise duty
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As is known, the price of fuels is made up of three elements, namely the cost of raw materials and transport, the actual excise duty and VAT, which is calculated on the sum of the first two. Therefore, in a context where the cost of fuel has risen substantially, the excise duty has represented a fixed value. Palazzo Chigi has decided to adopt a rule in force since 2007 which instead provides for the so-called mobile excise duty, that is, which allows you to use the higher VAT revenue already obtained from the sale of fuels to reduce the corresponding excise duty, and therefore obtain a double reduction of the final price: every 10 cents less than excise duty entails an additional 2.2 cents less than VAT. Technically, in 1995 the previous nineteen excise duties merged into a single undifferentiated excise duty which, according to the estimate of the Excise, Customs and Monopolies Agency, in 2021 brought 23.8 billion euros into the state coffers. “Unlike the previous measures, most of today’s interventions are not financed by the public budget, but by companies in the energy sector. We tax a part of the excess profits that producers are making thanks to the increase in the costs of raw materials, and let’s redistribute this money to businesses and families in difficulty “, reiterated Prime Minister Mario Draghi during the press conference at the end of the Council of Ministers, underlining how” one of the reasons for shortening the intervention period is also to see how it behaves the market in the coming days and weeks, trying to get through this great time to look for volatility. “