ECONOMY

Natural gas tax to take a toll

Imposing a special consumption tax on natural gas will lead to a 2.8 percent reduction in the gross domestic product and result in the loss of some 46,450 jobs, according to a survey by the Institute for Economic and Industrial Research (IOBE).

The tax, imposed on November 1, will also raise the cost of electrical energy by about 653 million euros per annum, while two-thirds of the projected revenues from the tax receipts will be lost due to the decline in financial activity, IOBE added.

Amounting to 5.40 euros per megawatt-hour for all uses of natural gas, the tax will also reduce domestic demand in products and services by some 1.3 billion euros and exports by 294 million euros, according to the report that Kathimerini has seen.

The above conclusions are in line with the overwhelming rejection of the measure by those in the electrical energy and natural gas industry, including Public Power Corporation (PPC), Public Gas Corporation (DEPA), independent producers and alternative suppliers.