Saturday August 23, 2014 Search
Weather | Athens
32o C
25o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Gov’t eyes heating oil tax cut

 Athens will ask its creditors for the reduction of the rate by 15-20 percent, slashing the price by 8 cents

By Prokopis Hatzinikolaou

The government will submit a request to its creditors in September for the reduction of the special consumption tax on heating oil by 15 to 20 percent. If they consent, the final retail price of heating oil will drop by about 8 cents per liter this fall to reach 1.32 euros/lt, compared with 1.40 euros/lt in October 2013, provided oil prices remain the same.

Greece’s request may also include favorable regulations regarding the criteria for the heating oil benefit that will continue to be handed out to households which fulfill specific conditions concerning income and property.

A top Finance Ministry official said that the reduction of the special consumption tax will affect all kinds of consumers, but stressed that a necessary condition will be the continued implementation of reforms and the implementation of all prior actions. “If we [express reservations] on other issues, the negotiations on taxes will become more difficult,” he explained, as “talks will get harder should ministers move away from the agreed points.”

The data to be presented by the government to the troika of inspectors from the European Commission, the European Central Bank and the International Monetary Fund will show that the measure of bringing the special consumption tax on heating oil up to the level of that for diesel has failed, with losses for the state budget amounting to almost 400 million euros.

Should the government and the troika reach a deal, there will once again be two different tax rates, one for heating oil at 26.5 cents/lt and one for diesel at 33 cents/lt. Still, the difference in rates will again be an incentive for illegal trade but will harm the demand for diesel. Market professionals say that the measure has worked as in its first year of application, winter 2012-13, demand for diesel grew by 10 percent.

For the country’s creditors to accept the government’s request, Greece will also have to make sure that the new inflow-outflow systems are operating at all fuel stations, although at present the electronic system which is supposed to monitor them is not even operating in Attica.

ekathimerini.com , Wednesday June 18, 2014 (22:49)  
Perceptions and praying for our peers
New banking measures aimed at tackling nonperforming loans
Smaller firms wiped out by the crisis
Bank shares on wild ride amid test fears
Baltakos rejects reports of plans to form own party
Ex-cabinet secretary and prime-ministerial adviser Panayiotis Baltakos says he is not poised to form his own party but believes New Democracy should be doing more to attract right-wing voter...
Athens finalizes Paris talks goals
The Greek government has begun finalizing its negotiating strategy for the imminent talks with troika officials in Paris, setting four clear priorities for the September meeting. Kathimerini...
Inside News
Soccer refereeing investigation goes into final stage
A judicial probe into alleged corruption in Greek soccer is entering its final phase, with 11 top officials due to give depositions to Court of First Instance deputy prosecutor Aristidis Kor...
West Brom sign Greek international striker Samaras
West Bromwich Albion have signed Greece striker Georgios Samaras on a two-year contract following his release from Scottish champions Celtic, the English Premier League club said on Friday. ...
Inside Sports
COMMENTARY
Purification rituals
The collection of higher-than-expected state revenues (which exceeded the target set for the seven-month period by 555 million euros) from income taxes and the terrible introduction of the n...
EDITORIAL
Building a solid state apparatus
The conservative-led government is making a valiant effort to modernize the country’s public administration. Bringing the system up to a decent standard is of course a painstaking process th...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Perceptions and praying for our peers
2. New banking measures aimed at tackling nonperforming loans
3. Smaller firms wiped out by the crisis
4. Bank shares on wild ride amid test fears
5. Baltakos rejects reports of plans to form own party
6. Soccer refereeing investigation goes into final stage
more news
Today
This Week
1. Purification rituals
2. Greek police in easiest drug arrest ever
3. Athens finalizes Paris talks goals
4. Kavala man left 6 dogs at home without food or water for 2 weeks
5. Athens police seek hit-and-run driver after pedestrian dies
6. Baltakos rejects reports of plans to form own party
Today
This Week
1. Carved sphinxes at Ancient Amphipolis tomb will not be removed
2. The magical mountain
3. Brussels warns Greece over plans to allow construction near Korinos beach
4. Merkel cites euro’s ‘construction flaws’ as economy sputters
5. Greek stock recovery fading away as ASE falls 21 pct on valuations
6. Second man held over double murder in Mani
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.