To maintain the competitiveness of their national companies and the purchasing power of their citizens, many European Union countries have reduced the excise tax rates on energy resources, for example Germany, Italy, Ireland. Hungary has set the maximum selling price for fuel; Poland has also cut the value added tax rate while Latvia is following a different path – promises to support low-income earners.
This is shown by a BDO study. Since the prices for natural gas and electricity have risen rapidly in the European Union member states, in March 2022 the European Commission's was issued a statement on the security of energy supply and level of reasonable energy prices. It offered options for preventing the impact of high electricity prices on residents and businesses. Several EU countries have already introduced reduced VAT rates for gas, electricity and/or district heating. However, some countries have not taken full advantage of the opportunities. And although the European Union has set minimum excise tax rates for energy resources, in some member states the rates of this tax are even lower than the minimum rate allowed by the EU.
Source: Dienas Bizness
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