The reduction of the Excise Tax on all fuels at reasonable levels for the operation of the economy and society, according to the model of pre-financial taxation, is requested in a letter to the Minister of Finance Christos Staikoura by the Federation of Gasoline Dealers of Greece, on the occasion of increases in fuel prices and energy in general.
As the Federation points out, in the retail prices of unleaded gasoline – 95 with taxes, our country ranks 5th in the EU-27, well above the EU average, while without taxes it ranks 15th, well below average of the EU! Similarly, the country’s positions in the price of diesel (9th) and heating (12th) in the EU-27, are anything but in line with the income of Greek businesses and households.
In detail, in its letter OBE states:
Subject: Fuel price increases and the need to reduce Excise Duties.
Honorable Minister,
The large increases in the prices of fuel and energy in general, are constantly exacerbating the problems for consumers, in the gas station sector, but also in the smooth operation of the economy and society.
We have pointed out for years that the determining factor of high prices is the very high fuel taxation, which concerns the Excise Duties (VAT) and VAT. Both of these taxes are among the highest in the EU at a time when the Greek family’s income is among the lowest. This contradiction creates huge problems in the economy and in society with side effects in all sectors.
Gas stations are feeling the inability of their customers to meet the new fuel prices, thus reducing purchases and performing only what is necessary.
At the same time, they feel the large increases in the prices of consumer products that are burdened by high energy prices.
Today, with 12 years of experience since the onset of the financial crisis and the aftermath of the pandemic, we are fully aware that high fuel taxes, while seemingly bringing revenue to the state, annihilate this revenue by undermining economic growth and undermining it. of social cohesion.
We note that, according to Bulletins of the European and Greek Fuel Price Observatory, of January 24, 2022, at the retail prices of unleaded gasoline – 95 with taxes, our country was ranked 5th in the EU-27, well above the EU average. , while without taxes held the 15th place, well below the EU average! This alone is enough to show the incredible increase in taxation of prices for the Greek consumer.
Similarly, the country’s positions in the price of diesel (9th) and heating (12th) in the EU-27, are anything but in line with the income of Greek businesses and households to have one. The taxes that are currently charged on fuel, per 1000 liters, are the following:
According to the Fuel Price Observatory of the Ministry of Development and Investment, the final retail price of unleaded -95m is formed on 28/01/2022, from the refinery price by 35.49%, from taxes (fixed and variable) by 58.77 %, and of the estimated margins of trading companies, liquid fuel carriers and service stations by 5.73%. In all fuels, the VAT is disproportionately increased in relation to the financial capabilities of the Greek consumer. It is obvious that the only factor that has room for substantial reduction is the EFC. This reduction will be reciprocated by the multiplier of the more productive operation of the economy and the increase of consumption in the transport of persons and goods.
We call on you to reduce the VAT on all fuels in a rational way for the operation of the economy and society according to the model of pre-financial taxation.
The tax burdens of the states on fuel
Based on EU-27 price lists in different Member States, different Excise Duties (VAT) prevail, different VAT rates. different other charges and different corporate profit margins.
E.g. the differences between Greece and Cyprus in unleaded – 95 are the following:
Final price (7-2-2022) in €: Greece 1,850 / l – Cyprus 1,378 / l. Difference = € 0.472.
The difference arises from: the VAT, the VAT, the various charges and the percentage of profit of the wholesale companies, the carriers and the service stations. All of the above are different from country to country. In Cyprus the VAT and duties amount to 439.7 € / 1,000l and in Greece 713.55 €. VAT is also 19% in Cyprus and 24% in Greece.
Sources: Oil Weekly Bulletin:
https://energy.ec.europa.eu/data-and-analysis/weekly-oil-bulletin_en?redir=1
Taxes and duties:
https://ec.europa.eu/energy/observatory/reports/Oil_Bulletin_Duties_and_taxe s.pdf
Source: Capital
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