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E85: before tax increases? News from Auto Plus in your smartphone News from Auto Plus in your mailbox

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E85: before tax increases?  News from Auto Plus in your smartphone News from Auto Plus in your mailbox

In recent years, the success of E85 superethanol has been proven. Indeed, this fuel, which is 85% ethanol, as the name suggests, is a sensible alternative and has many advantages over conventional unleaded. Starting with its price, as a liter is currently displayed below the €1 mark. A real asset, especially in this period of significant price growth. While gasoline at some stations flirts with two euros, despite a discount of 30 cents from the government. No wonder motorists are flocking to E85, fuel shortages elsewhere have had little effect. In addition, this alternative is also more environmentally friendly, and many gas stations now offer it.

Raising taxes?

But if E85 is cheaper, mainly because it is less taxed. And as you can imagine, the authorities don’t like it very much. Actually, they would even think about raising taxes. In any case, this is revealed by a high-ranking official from Bercy, in an interview with Le Parisien. He then states that ” The day when the vast majority of cars will switch to electricity and, perhaps, partially to superethanol, the state will definitely have to compensate the 42 billion euros received in fuel taxes. We will have to invent a new taxation“. But for now, these are just thoughts that provide relatively little information about how all of this will be implemented.

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Tax relief

Currently super ethanol therefore benefits from reduced taxation compared to other fuels with a TICPE of only €11.83 per hectolitre, compared to €66.29/hl for SP95 E10 and up to €68.29 for unleaded 95 standard. Suffice it to say, it makes a hell of a difference! According to the Chamber of Accounts, this benefit would be “a state-funded incentive measure for the benefit of the consumer, and not a measure to compensate for the additional costs of ethanol production.” And that may soon change…

Author: Mary Lizak
Source: Auto Plus

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