A proposal to align the excise taxes on diesel and gasoline is on the table, the Ministry of Economy and Finance has confirmed, assuring that there will be no price increase. “As per the commitments under the National Recovery and Resilience Plan (NRRP), the specific recommendations of the European Commission, and the 2022-approved Plan for Ecological Transition, the government is required to adopt measures aimed at reducing harmful environmental subsidies,” officials from Viale XX Settembre explained.
“This initiative aligns with the government’s approach and will not simply raise diesel excise taxes to match those of gasoline but will recalibrate both,” the statement read. “The Medium-Term Structural Budget Plan has outlined that this alignment will be defined as part of the tax delegation’s implementing measures.”
Consumer and Business Concerns
The paradox of increasing excises The notion of increasing diesel excise taxes, hinted within the structural budget plan in preparation for the upcoming Financial Maneuver, seems absurd and even paradoxical,” stated Federconsumatori. “Especially considering that the proposing government, while previously in opposition and during its election campaign, had championed the abolition of fuel excises,” added the association.
Impact on motorists and citizens Adjusting diesel/gasoline excises (raising the current diesel excise from €0.617 to €0.728) would disastrously impact motorists and all citizens. According to the national observatory Federconsumatori, directly, each motorist would face an annual increase of approximately €112 for diesel refueling. However, the more severe repercussions would stem from the indirect effects of this operation, since in Italy, about 84% of goods are transported by road: the rise in diesel costs would lead to an additional burden on widely consumed goods amounting to €121 annually per household (for all households, including those without a car).
The cumulative burden The total additional cost for a household with a diesel car amounts to approximately €233 per year. “This plan is unacceptable from every perspective,” according to Federconsumatori. “Perhaps the government misunderstood us when we called for intervention on excises: we demanded an immediate and adequate cut of fuel excises, or the establishment of a truly effective floating excise; not to mention the separation of excises from the application of VAT on fuels, thus eliminating the unfair imposition of a tax on another tax.”
Industry Response
Faib Confesercenti’s stance “An increase in diesel excises, aimed at equating them with those already weighing on gasoline, would become a real burden for families and businesses. The tax burden on fuels in our country is already among the highest in Europe and should be reduced, not increased,” stated Faib Confesercenti. A further increase in diesel excises “would also drag down the costs of transporting goods, with a cascading effect on the final prices of products. In the event of raw material price hikes, we could face dramatic increases, as unfortunately happens periodically,” the association highlighted.
Faib proposes introducing “a floating excise, i.e., a mechanism that allows using the increased VAT revenue linked to fuel price increases, to dynamically reduce excises. A measure of fairness that would benefit businesses and consumers alike, because it would help contain inflation generated by high fuel costs and spread the benefits of reduced pump prices across more fronts.”
Economic Implications
Unimpresa’s concerns “The increase in fuel excises, particularly on diesel, not only represents an immediate burden for families and businesses but also risks triggering a dangerous and perverse inflationary spiral that would affect the entire economy,” declared the president of Unimpresa, Giovanna Ferrara. “In addition to contradicting the government’s political line, the measure seems to disregard the economic difficulties already being faced by Italian citizens. Therefore, reconsidering this strategy appears not only appropriate but necessary to prevent even more severe economic consequences,” she added.
A measure of this kind, according to the president, “would be extremely detrimental to the Italian economy. Both families and businesses would deeply feel the impact, with chain reactions that would erode the purchasing power of citizens and increase management costs for companies, triggering a perverse spiral of price increases for the final consumer.”
Contradictory government policies “One of the most controversial aspects of this excise increase proposal,” according to Ferrara, “is its clear contradiction with the political line of the government led by Giorgia Meloni. During the electoral campaign and in the early months of the government, the executive has repeatedly declared itself against new taxes on fuels, believing that such measures would only worsen the economic situation for families and businesses.”
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Carlos Jiménez is a Cantabria-based political correspondent with a sharp analytical mind. His coverage of local politics provides insights into how regional developments impact the broader national landscape. With a degree in Political Science from the University of Barcelona, Carlos offers in-depth analysis and thought-provoking commentary on the dynamics of Spanish governance. His commitment to uncovering the truth makes his pieces a must-read for those interested in the intricacies of political affairs.