Italy grants further fuel tax concessions

Budget proposal for 2001 extends road fuel tax breaks, cuts tax on heating fuel, industrial electricity

Having already joined France in offering road fuel tax reductions following September's wave of anti-tax protests, the Italian government today went a step further. In its budget proposal for 2001, it proposed to extend an existing euros 0.026 (IL50) per litre tax rebate on petrol due to expire at the end of the year until next June.

The budget also includes a euros 0.026 per litre rebate on diesel and natural gas used for domestic heating, plus tax breaks for industrial electricity consumers of at least euros 0.004 per kilowatt hour. The government estimates the total package of energy tax concessions to be worth euros 1.96bn (IL3.8 trillion).

Earlier this week, the government confirmed an emergency duty rebate in diesel prices for commercial drivers worth euros 0.06 per litre, effective to the end of December (ENDS Daily 26 September).

Follow Up:
Italian industry ministry, tel: +39 06 47 88 79 43

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