Fuel tax reduction to come into effect this week

The Parliament is set to deliberate tomorrow on an amendment regarding the decrease in consumption taxes for motor fuels and heating oil, in coordination with the Ministry of Finance.

Scheduled for discussion in an emergency session by the House Financial Affairs Committee, the proposed bill outlines an 8.33 cents per litre reduction in excise tax for both gasoline and motor oil, effective until February 29, 2024.

Last week, the Parliament failed to convene due to the absence of several members abroad, despite the prior approval of the bill by the Cabinet. However, the bill is expected to be urgently presented and voted on during tomorrow’s session.

The Ministry of Finance technocrats are currently in discussions with parliamentary counterparts to adjust the implementation date for the reduced consumption tax.

Two options are being considered: immediate enforcement starting tomorrow, right after the Parliament’s approval and the publication of the law in the Official Gazette of the Republic, or implementation from November 3.

In either scenario, an extension of the completion date for the measure will be enacted.

The anticipated fiscal impact of reducing the consumption tax on motor fuels is projected at €21.8 million. Today’s proposal in Parliament not only encompasses the aforementioned fuel tax reduction but also includes a plan to lower the consumption tax on heating oil, scheduled from December 1, 2023, until March 31, 2024, with an estimated fiscal cost of €3.8 million.