Proposal: a reduction in the VAT rate on energy, a reduction in the excise duty on petrol and diesel and an increase in the energy surcharge

• Redulction VAT rate on energy (natural gas, electricity and district heating) from 21 percent to 9 percent between 1 July 2022 to 31 December 2022
• Lower the excise duty on petrol and diesel by 21 percent. As a result, the excise duty on petrol will fall by 17.3 cents per liter and the excise rate on diesel by 11.1 cents. The reduction in excise duties applies for the period 1 April 2022 to 31 December 2022.
• The excise duty on LPG (including liquid propane and butane) and LNG will also be reduced by 4.1 cents per liter.
• Households at social assistance level receive an allowance of approximately 800 euros to compensate for the increased energy costs.

Source PwC

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