To alleviate high inflation and rising energy prices, the government in Italy has decided to create a € 14 billion relief package. One of its key points: financial assistance for fuels.
“The aim is to ensure the purchasing power of poor families and the production of enterprises,” Italian Prime Minister Mario Draghi said after the cabinet decision. Thus, for example, the state will give 200 euros to employees, pensioners and those who work independently, whose income is less than 35 thousand euros per year. According to Draghi, this number of people captures 28 million people, out of 60 million Italians. In addition, tax incentives are provided for enterprises that use a lot of energy.
Fuel remains 30 cents cheaper
Earlier, the government announced that given the sharp rise in prices at gas stations as a result of the war in Ukraine, it will reduce the price of fuel for drivers with a tax reduction of 30 cents per liter. The price of methane gas will also be reduced. The cabinet initially decided to take measures for fuel for the month of March to May, when prices rose.
Draghi said the measures add to other previously announced reliefs at 15.5 billion euros, “meaning they total 30 billion euros, or two percent of the country’s gross domestic product.” Italian activity fell by 0.2 percent in the first quarter of 2022, compared to the previous quarter.
The reason for this is the aggravation from the Corona pandemic and the increase in fuel prices as a result of the Russian attack on Ukraine.
Tax on profits of energy enterprises
Due to the consequences of the energy price war, the Italian government announced in March that it would tax more of the profits made by energy companies, in order to facilitate households and other firms. Profit tax plus will fund the current aid package./DW