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Fuel prices: VAT reduction as a way out? News from Auto Plus in your smartphone News from Auto Plus in your mailbox

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Fuel prices: VAT reduction as a way out?  News from Auto Plus in your smartphone News from Auto Plus in your mailbox

For more than a year, fuel prices have literally soared. And there are many reasons for such an amazing growth. First, it is, of course, the war in Ukraine, but not only. Because it also led to an embargo on Russian oil, while other producing countries also decided to cut their production. Not saying either taxes applicable in France, as well as distributors’ margins, which certain consumer associations consider excessive. In a word, all this forms a real explosive cocktail, which inevitably raises prices at the gas station. But how can we do this?

Tax reduction

Especially since prices fell everywhere in the rest of Europe, except at home. If the government blamed the distributors, there would be another reason for such high tariffs. These are taxes which are at least 60% per litre, together with TICPE and VAT. But then, what can be done to return the fuel to an acceptable amount? According to Philippe Nozier, president of 40 Million Motorists, the solution is simple: lower taxes. The latter believes that it will be necessary reduce VAT to 5.5%as with all essentials“. But it is not so obvious.

The authorities against

Currently, there is a value added tax about 20%, which is obviously very high. But is the government ready to make this gesture? All indications are that he is not, when he already spoke on the subject months ago, claiming that he refuses to do so. He explained that it would cost the government too much and that he did not want to encourage the use of products from non-renewable sources. At that time, he decided to set a discount of 30 cents per liter.

Read also:
Ethanol: Everything you need to know about E85 (carton, price, benefits and more)
Three tips on how to pay less for fuel at the gas station
Fuel prices: The government no longer wants to help the French

Author: Mary Lizak
Source: Auto Plus

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