Milan, 27 Aug. (LaPresse) – “No to bonuses, social cards or other selective income-based support measures to tackle high fuel prices. The strategy confirmed by the government for the measures due to come into force after 5 September risks turning an emergency affecting motorists as a whole into a social welfare measure, without having the slightest impact on prices at the pump.” This is the view of Codacons, commenting on the guidelines that emerged following the Council of Ministers meeting. “The high cost of fuel is not a problem that affects only lower-income households and cannot be tackled through the ISEE,” states Codacons, which argues that “petrol and diesel cost the same for everyone, and price rises affect millions of citizens, workers and families indiscriminately”. According to the association, “restricting aid solely to the lowest income brackets would also have the effect of once again leaving the middle class completely exposed – too ‘wealthy’ to qualify for support but not wealthy enough to absorb the sharp rise in transport costs without suffering the consequences”. Furthermore, bonuses, social cards and selective concessions “would have no direct effect on the price of petrol and diesel: prices at the pump would remain unchanged and millions of motorists would continue to pay high fuel prices”, adds Codacons. For Codacons, the way forward “must therefore be different: automatic and universal measures capable of directly influencing the cost of fuel. In Italy, the mechanism of ‘floating excise duties’ already exists, which, under certain conditions, allows the additional VAT revenue generated by price rises to be used to reduce the tax component.” This instrument, explains Codacons, “must be complemented by a second mechanism that uses a share of the windfall profits and increased margins realised by large companies to fund measures to reduce prices at the pump. The resources should come primarily from the major operators in the oil and energy sectors and, where there are actual windfall profits, also from other highly profitable sectors, starting with banks and insurance companies.”
Fuel: Codacons says, “Subsidies do not bring down prices at the pump; action must be taken on windfall profits”
Milan, 27 Aug. (LaPresse) – “No to bonuses, social cards or other selective income-based support measures to tackle high fuel prices. The strategy confirmed by the government for the measures due to come into force after 5 September risks turning an emergency affecting motorists as a whole into a social welfare measure, without having the slightest impact on prices at the pump.” This is the view of Codacons, commenting on the guidelines that emerged following the Council of Ministers meeting. “The high cost of fuel is not a problem that affects only lower-income households and cannot be tackled through the ISEE,” states Codacons, which argues that “petrol and diesel cost the same for everyone, and price rises affect millions of citizens, workers and families indiscriminately”. According to the association, “restricting aid solely to the lowest income brackets would also have the effect of once again leaving the middle class completely exposed – too ‘wealthy’ to qualify for support but not wealthy enough to absorb the sharp rise in transport costs without suffering the consequences”. Furthermore, bonuses, social cards and selective concessions “would have no direct effect on the price of petrol and diesel: prices at the pump would remain unchanged and millions of motorists would continue to pay high fuel prices”, adds Codacons. For Codacons, the way forward “must therefore be different: automatic and universal measures capable of directly influencing the cost of fuel. In Italy, the mechanism of ‘floating excise duties’ already exists, which, under certain conditions, allows the additional VAT revenue generated by price rises to be used to reduce the tax component.” This instrument, explains Codacons, “must be complemented by a second mechanism that uses a share of the windfall profits and increased margins realised by large companies to fund measures to reduce prices at the pump. The resources should come primarily from the major operators in the oil and energy sectors and, where there are actual windfall profits, also from other highly profitable sectors, starting with banks and insurance companies.”