Filenews 27 October 2023
With a few days delay, compared to the initial intention of the Government, the measure of reducing the consumption tax on fuel is likely to be implemented.
That is, instead of motor fuel prices falling from November 1, as was originally planned, they will "fall" perhaps on Friday, November 3. The delay is due to the fact that the bill has not yet been voted on by Parliament, which, however, as a competent parliamentary source stated, has not yet been tabled. The Ministry of Finance, for its part, claims that the bill has been forwarded to Parliament.
Specifically, last Wednesday the Council of Ministers approved two bills related to the reduction of excise taxes on fuel, measures included in the government's package of measures against high prices. This is the bill that reduces excise duty on motor fuels, i.e. unleaded petrol and diesel by 8.33 cents per litre. According to the bill, the tax reduction will take effect from November 1, 2023 until February 29, 2024, at a fiscal cost of €21.8 million. The bill states that the text should be tabled and examined by Parliament in the form of urgency.
However, something that did not happen, as yesterday the Plenary of the Parliament did not convene, due to the absence of a large number of MPs abroad.
Therefore, against this background, it seems that the measure that will provide some relief to consumers will be delayed for a while in its entry into force. That is, next Thursday, November 2, the Plenary of the Parliament is expected to approve the bill, which will practically take effect the next day, so as to give gas station owners time to change fuel prices. A competent government source told "F" that the number of days that the measure will be delayed will be added to the end of the implementation of the decision. That is, if the measure comes into force on Friday, November 3, then it will expire on March 3, 2024.
Ok for heating oil
The second bill concerns the reduction of excise duty on heating oil by 6.39 cents per liter. This bill is not pressing, as the measure will apply from December 1, 2023 to March 31, 2024. The budgetary cost will be €3.8 million. Despite requests to implement the reduction in excise duty on fuel from November, the Ministry of Finance considers that this is not justified by weather conditions.
By decree the subsidy to electricity
The graduated subsidy of electricity does not need legislative regulation, but only a government decision. The subsidy (on the increase that may occur compared to the June 2022 tariffs) will concern the invoiced months November 2023-February 2024, for measurements until February 29. It covers residential, commercial and industrial consumers, depending on consumption, while for those vulnerable to tariff 08 the subsidy of the increase will be 100%. The cost will be €45 million.
From November 1 to April 30, VAT on coffee and sugar will be zero. Zero VAT on bread, milk, eggs, baby food and diapers, feminine hygiene products and adult diapers continues until the end of April. From December 1, VAT on meat and vegetables will be zero, until May 30.
