Italy extends fuel excise tax cuts until May 1

The Italian Council of Ministers has approved a new decree-law extending fuel excise tax reductions until May 1. Economy Minister Giancarlo Giorgetti announced that the measure will maintain current discounts at the pump, which include a reduction of 25 cents per liter for diesel and gasoline, and 12 cents for LPG.

The measure is estimated to cost approximately 500 million euros. Funding will be sourced through 200 million euros in self-financing from increased VAT revenues and 300 million euros recovered from unused ETS CO2 funds, ensuring original allocations for energy-intensive industries remain untouched.

Additionally, the government is extending a 20% tax credit to agricultural holdings, a benefit previously applied to the fishing sector. The decree also includes provisions regarding exports and Simest, the CDP Group company responsible for the internationalization of Italian businesses. Regarding fiscal stability, Giorgetti noted that if geopolitical tensions in the Middle East persist, an EU derogation from the 3% deficit limit may become inevitable.