Bulgaria Will Be Worst Affected in EU by Common Excise Duty Rate for Fuels, Experts Warn
NW 15:51:31 07-10-2021
LG1549NW.116
116 ECONOMY - FUELS - PRICES
Bulgaria Will Be Worst Affected in EU
by Common Excise Duty Rate for Fuels,
Experts Warn
Sofia, October 7 (BTA) - If the new climate package known as "Fit for 55" is adopted as proposed by the European Commission, Bulgaria will be the worst affected EU Member State because it is the only one in the Union with minimum excise duty rates for fuels, Bulgarian Petroleum and Gas Association (BPGA) legal adviser Stanislav Benchev said at a discussion on "Fit for 55" here on Thursday.
"Fit for 55" was published by the European Commission in mid-July 2021. The package of legislative amendments is intended to achieve the Green Deal objectives. The idea is to cut carbon emissions by 55 per cent by 2030 and achieve zero emissions by 2050.
The new directive scraps all possible exceptions from the common tax treatment that existed so far for Member States. "The European Commission wants a common rate under these conditions," Benchev emphasized. As a result, the excise duties on fuels will increase in the 2023-2033 period and will be hiked further after 2023.
As an example, he cited LPG, where the excise duty will soar from 0.18 leva/litre now to 0.40-0.41 leva/litre between 2023 and 2033, and methane (as a motor fuel), where the rate will go up from 2.30 leva/kg now to 3.00 leva/kg by 2023. "If the environmental component is factored in, the price per litre will be hiked by another 1-1.10 leva/litre before VAT, given that the cost of carbon emission allowances approximates 60 euro per tonne," the expert added, describing this development as "exceedingly alarming".
According to Tihomir Bezlov of the Center for the Study of Democracy, fuel prices may rise by some 50 per cent in 2023, which may lead to a surge in the proportion of illegal fuels.
The share of the illegal fuels market in Bulgaria was 12-15 per cent last year, which means that out of 6 billion litres, 1 billion litres were illegal, Bezlov said. PP/LG
//
LG1549NW.116
116 ECONOMY - FUELS - PRICES
Bulgaria Will Be Worst Affected in EU
by Common Excise Duty Rate for Fuels,
Experts Warn
Sofia, October 7 (BTA) - If the new climate package known as "Fit for 55" is adopted as proposed by the European Commission, Bulgaria will be the worst affected EU Member State because it is the only one in the Union with minimum excise duty rates for fuels, Bulgarian Petroleum and Gas Association (BPGA) legal adviser Stanislav Benchev said at a discussion on "Fit for 55" here on Thursday.
"Fit for 55" was published by the European Commission in mid-July 2021. The package of legislative amendments is intended to achieve the Green Deal objectives. The idea is to cut carbon emissions by 55 per cent by 2030 and achieve zero emissions by 2050.
The new directive scraps all possible exceptions from the common tax treatment that existed so far for Member States. "The European Commission wants a common rate under these conditions," Benchev emphasized. As a result, the excise duties on fuels will increase in the 2023-2033 period and will be hiked further after 2023.
As an example, he cited LPG, where the excise duty will soar from 0.18 leva/litre now to 0.40-0.41 leva/litre between 2023 and 2033, and methane (as a motor fuel), where the rate will go up from 2.30 leva/kg now to 3.00 leva/kg by 2023. "If the environmental component is factored in, the price per litre will be hiked by another 1-1.10 leva/litre before VAT, given that the cost of carbon emission allowances approximates 60 euro per tonne," the expert added, describing this development as "exceedingly alarming".
According to Tihomir Bezlov of the Center for the Study of Democracy, fuel prices may rise by some 50 per cent in 2023, which may lead to a surge in the proportion of illegal fuels.
The share of the illegal fuels market in Bulgaria was 12-15 per cent last year, which means that out of 6 billion litres, 1 billion litres were illegal, Bezlov said. PP/LG
//
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