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Absolute novelty on gasoline. The government decided

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The recent rise in the cost of fuel has put worrying discontent high on the government’s agenda. The solution? Reducing taxes on gasoline and diesel.

Gas station (Photo by Rudy and Peter Skitterian from Pixabay)

The cost increase of fuelItalia In case of alarm. The government is looking forward to Cuts Fees charged As a possible solution to the problem, we hope it is a passing resolution.

But the tax cut is already there solution to the increase in price Gas and fuel? If so, can it not be completely removed? We talk about government maneuvers and the consequences of the executive branch on market.

Expensive fuel: the solution lies in lowering taxes

Expensive petrol electric car
Electric car (Photo by Mikes-Photography by Pixabay)

Present energy crisisgenerated for half of public opinion from the conflict in Eastern Europe and the other half through economic maneuvers that have been implemented undercoverneed one solution. The government is trying to reduce excise duties, but let’s see in detail what they are.

The Consumption fee they are flat taxes Apply to items such as Electricity or fuel. These taxes are included in the selling price of the asset at time to buy. Historically, the value of the consumption tax increases in parallel with the needs provided by the historical period. This means that needs arising during humanitarian crises or wars, such as the need for military supplies or medical devices, have been partially met by resorting toAn increase in the excise tax.

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From 1995 So far, excise duties are no longer differentiated on the basis of specific deficit channels to be bridged in a particular region of the world in case of war or emergency. Today’s excise duties respond to asingle entry Undifferentiated applicable to multiple sectors. The taxes collected by the government from the excise tax on fuel are around 2021 23.8 billion euros. Big number explains to hesitate Described in the subject of possible tax abolition.

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Excise fees covered fourth place On the podium State tax revenue. However, we should not praise the It’s raining a government thief! Even if the government decides to significantly reduce the value of the excise duty, They can’t be eliminated entirely. because? The truth is thatEuropean Union created threshold threshold Taxable on energy goods for all member states.

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The goal is to keep competition high and thus preference dynamism insideMarket economy. So the government cannot completely eliminate the excise duty for international issues and internal taxes. Then there is an aspect of intuition to consider Not so instant: Tax cuts are a gambit Disadvantages of environmental protection.

Yes, because the lower the price of fuel, the higher the price of itincentive to consume and trading. As long as the transition to electric cars does not experience a huge boost, it will be fine Reducing emissions from fossil fuels. This becomes possible if they prefer themselves Greener Choices In terms of distribution, preferably, for example, Public transport or Bicycles.

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