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HomeExcise duty, no budget blow but Giorgetti initiates reforms.

Excise duty, no budget blow but Giorgetti initiates reforms.

Minister of Economy Giancarlo Giorgetti announced that excise duty on diesel fuel and their remodeling will be done through the arrangement. Excise Legislative Decree, It was provisionally approved in the Council of Ministers on 15 October. That means the move will not be part of a fiscal maneuver but will remain an internal debate within the government, as part of the tax enabling law passed in 2023.

Giorgetti also mentioned in the press conference the fact that the parity of excise duty on diesel “European Commitment” Which has to be managed. The legislative decree on excise duty will also amend the agreed text on the subject, which will also relate to natural gas, electricity and alcoholic products.

Excise Duty Out of Budget: What is Giorgetti’s Legislative Decree?

Economy Minister Giancarlo Giorgetti explained at a press conference that the 2025 fiscal initiative will not make any mention of it. Excise duty on diesel fuel. However, the head of the department also said that the issue will be resolved in a legislative decree that was placed on the agenda of the same Council of Ministers on October 15 that approved the initial text of the budget law.

To understand what a legislative mandate is, we need to start with one of the ways in which laws can be enforced in Italy: delegation. In certain cases, Parliament can delegate its legislative power to the Government, i.e. to write laws, Enabling law. Subjects on which the government can legislate without consulting Parliament should be included in the text of this law. These are very specific limits that leave only the details of the rule to the executive. In short, Parliament therefore tells the government what to do and how to do it and it is the Council of Ministers that makes the legislation.

Legislative Decrees These are the tools with the help of which the government does the work of delegation. These are the laws that result from the work delegated to the government by the Parliament. They should not be confused with decrees of law, legislative acts passed by the government, which come into force immediately without the intervention of Parliament (hence also called emergency decrees), but then They must be discussed and approved within 60 days. Two rooms or dilapidated.

In 2023, Parliament approved an enabling law in the area of ​​taxation. The main objective of this delegation was to empower the government to reform the income tax. Irpef. However, a part of this delegation was also related to excise duty. Parliament was specifically asked to intervene. Environmentally Harmful Subsidies. The government should have taken steps to achieve these goals.

  • Change excise duties on gas and electricity to reduce environmental impact.
  • Promote renewable energy sources.
  • Reorganize excise duties on energy products by eliminating environmentally harmful subsidies.
  • Revise excise duty on alcoholic products.
  • Review Excise Duty on Lubricating Oils

Excise reform, from diesel to alcohol

Therefore, the government has decided to include the restructuring of excise duty on diesel fuel in the legislative decree dealing with these taxes. Actually, excise duty refers to indirect tax. On the production or sale of certain products. It is indirect because the state imposes it on producers or retailers and it is then passed on to consumers through the price of the product itself. It differs from VAT as the latter does not differentiate and applies to all products and services, while excise duty is specific and does not refer to prices but to the quantity of the good sold.

Reforms in excise duty will not only concern the equity of taxes levied on diesel Electricity, gas and wine. It should be noted that as Giorgetti himself said, the text of the legislative decree was approved.Initially“So the government has a common sense of how Excise Reformsbut reserves the right to specify details later. Consequently, there is no accurate data yet on the possible increase in excise duty on diesel fuel. The approved text has four main points.

  1. Amendments to the Consolidated Law on Excise Duty. The reforms introduce a qualification system for operators in the energy sector, SOAC. This is a way of making it easier for companies to pay excise duty.
  2. Reforms in excise tax on natural gas. Also in this case it is a series of rules that reorganize the way companies pay and calculate excise tax. The distinction between natural gas for “civil” and “industrial” use has been replaced by one for “domestic” and “non-domestic” use to make it clearer.
  3. Reforms in excise duty on electricity. It will be similar to gas and in this case too, it will mainly concern companies operating in this sector.
  4. Excise duty on liquor. The procedure that businesses selling alcohol must follow to obtain a license will be simplified.

Among the important points, which were present in the tax delegation, will therefore be the reorganization of excise duty. Diesel As Giorgetti declared.

Is excise duty on diesel a European commitment?

During the press conference to present the fiscal measures, the Finance Minister also said that the parity of excise duty on diesel “A European commitment that must be managed.” Indeed, as part of the Pnrr, Italy has undertaken to review Environmentally Harmful Subsidies, or SAD. This commitment was also made by the government of Georgia Maloney, so that on December 8, 2023, the EU His approach was reinforced in the Council on Economic and Financial Affairs.

Italy has developed a 2022 Sad catalogwhich termed subsidy to hauliers and farmers and low excise duty on diesel as harmful. In fact, in our country, each liter of petrol costs 1.041 euros in terms of excise duty and VAT, while the tax on one liter of diesel is 0.909 euros. The goal is to equalize them, an operation that can result.An increase of around 13 euro cents per litre of diesel.

Giorgetti, however, in his speech on the maneuver said, “There will be no sting.For Italian customers. Consequently, an equalization operation may involve a modest increase in excise duty on diesel and an equally modest reduction on petrol. A zero-cost intervention or perhaps with a positive cash-flow effect for the state, which would have less impact on motorists.

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