Italy confirms to ease price burden on households

Date:

Italy stated on Friday, March 18, that the government would tax energy companies’ additional earnings due to rising prices to assist people and businesses dealing with high bills.

“Let’s tax a portion of the extraordinary gains that producers are generating as a result of the increase in the cost of raw materials and redistribute the money to struggling businesses and families,” Prime Minister Mario Draghi told reporters.

Advertisement

Moreover, Economic and Finance Minister Daniele Franco told the same news conference that the tax would be 10 % on the part of the extra gains made, although the details were unclear.

A government source told the correspondent that it would be based on a measure of extra earnings made in the last 6 months as compared to the same period the year before.

Furthermore, Draghi said the money would go toward a new 4.4 billion euro package to help people cope with rising energy prices, which comes on top of the 16 billion euros already spent in recent months.

The source said that the package will also be funded by additional tax revenue generated by increased energy costs and will not require additional borrowing.

In addition, countries all around Europe are scrambling to find policies to alleviate the agony of high energy prices, which were already high before Russia’s invasion of Ukraine pushed them much more elevated.

A drop in excise duty on gasoline, which would reduce the pump price by 25 euro cents a litre for one month only, is one of the new Italian measures aimed at addressing what Draghi described as a period of “significant volatility.”

ADV

The Italian administration will also freeze energy bills at last summer’s prices for another 1.2 million homes, bringing the total to 5.2 million.

Share post:

spot_img

Popular

More like this
Related

Ernest Hilaire urges Saint Lucians to unite & shape their destiny

Ernest Hilaire went to the press conference for the 44th Independence Day celebrations in Saint Lucia yesterday.

UK: Mortgage borrowers rush to pay loans after interest rates rise

UK Finance, an industry group, shows how the government's "mini" budget in September 2022 caused fixed-rate mortgage interest to skyrocket.

60% of investors are optimistic about Ethereum’s future

The last year was hard for cryptocurrencies because of the long bear market and the failure of some companies, but investors still believe in the assets.

UK Govt plans won’t work without addressing NHS staff shortages

Health experts warned the government's plan to fix the emergency care crisis they said "It won't work without addressing NHS staff shortages"