While Mario Draghi’s government prepares the anti-crisis plan to face the impact on the economy of the conflict in Ukraine, the other countries are also moving in the same direction.
According to Bild, German finance minister Christian Lindner is preparing a large discount for gasoline. His goal is to ensure that the price remains below € 2 per liter for consumers. According to the tabloid, those who make gasoline should receive the discount directly at the parking, while the government would pay the rest. The extent of the discount is not yet known, but a price reduction of at least 0.20 cents per liter is expected.
Austria: introduce EU VAT exceptions
Austria asks for “exceptions for Member States” on the minimum VAT rate for motor fuels. This was said by the Austrian Finance Minister, Magnus Brunner, upon his arrival at the Eurogroup. The reduction of the rate “is not so trivial” because there are “minimum quotas at European level” but the possibility of acting on VAT “at least temporarily” would allow a “flexible reaction” to price increases, explained the minister. “The challenge is at the European level”, he added, explaining that the “options on the table” of the finance ministers of the euro area “are many”.
Spain is studying tax discounts for various products
The Spanish government is also studying measures to limit the impact on households of recent high rates of inflation, according to what was announced by the Minister of the Treasury, María Jesús Montero. “We will study a package of measures, some of which will involve lowering the taxation of certain sectors or products that are clearly affected by rising inflation,” she said. Among the products for which these measures are being considered are fuels.
Belgium cuts excise duties by 17.5 cents per liter
To reduce the impact of expensive fuel after pump prices broke through the two euro per liter ceiling, the Belgian government has decided to cut excise duties on each liter of petrol and diesel by 17.5 euro cents. The measures will enter into force as soon as it is published in the national Official Gazette. The federal government has also decided that VAT on electricity and gas bills will drop to 6% from April 1. Thanks to these and other interventions, each average family will be able to save around 300 euros annually, according to official estimates. Much of the cost of the interventions will be financed with higher tax revenues generated by the increase in energy prices.
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.