absolute novelty on petrol. The government has decided

The recent rise in the cost of fuel has put alarming discontent at the top of the government agenda. The solution? Reduce excise duties on petrol and diesel.

The cost increases of fuels has put theItaly in alarm. The government looks to the cut excise duties as a possible solution to the problem, hopefully, a passing one.

But the excise cut is really there solution to the increase in the price of gas and fuels? If so, could it not be completely removed? We talk about the government maneuvers and the consequences of the executive on the market.

Expensive fuels: the solution is in the cut in excise duties

The current energy crisisgenerated for half of public opinion by the conflict in Eastern Europe and for the other half by economic maneuvers carried out undercoverhe needs one solution. The government tries to cut excise duties, but let’s see in detail what it is.

the excise they are fixed taxes applied to goods such as electricity or fuel. These taxes are included in the sale price of the asset at time of purchase. Historically, the value of the excise duty increases in parallel with the needs advanced by the historical period. This means that needs emerging during humanitarian crises or wars, such as the need for military supplies or medical devices, were met in part by resorting toincrease in excise duties.

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From the 1995 to date, excise duties are no longer differentiated on the basis of the specific deficit channels to be filled in a specific area of ​​the world at war or in a state of emergency. Excise duties, today, respond to asingle entry undifferentiated applicable to multiple sectors. The taxes the government derived from the excise duty on fuel amounted to approximately 2021 23.8 billion euros. A substantial figure that explains the reticence shown on the subject of a possible elimination of taxes.

Excise duties cover the fourth rank on the podium of state tax revenue. However, we must not praise the it’s raining government thief! Even if the government decides to substantially reduce the value of excise duties, it could not eliminate them altogether. Because? The fact is that theEuropean Union established a minimum threshold taxable on the energy goods of all member countries.

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The goal is to keep competition high and thus favor the dynamism inside themarket economy. The government therefore cannot completely eliminate excise duties for international issues and for internal taxes. Then there is an aspect of intuition to consider not very immediate: reducing excise duties is a maneuver that disadvantages environmental protection.

Yes, because the lower the price of fuel, the higher it will be‘incentive to consumption and circulation. As long as the transition to electric cars does not experience a major push, it will be good reduce emissions from fossil fuels. This becomes possible if they favor themselves greener choices in terms of circulation, preferring, for example, public transport O bikes.

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