Fuel tax increases are negatively impacting fuel-related tax revenues, market data for the first half of 2016 has shown.
Fuel-related VAT collections fell by 140 million euros in the first half of the year, while the Special Consumption Tax collected during the same period fell by 33 million euros, according to local business news daily Imerisia.
Data provided by the Hellenic Statistical Authority highlights the problem faced by the government’s attempt to boost tax revenues. Fuel sales fell by 7.1 percent – in volume terms – in May, while, over the first quarter, the decline measured 6.6 percent.
Based on these figures, the tax-revenue potential of an already-ratified Special Consumption Tax hike on fuel, to take effect mid-October for heating fuel and January 1 for all other fuels, is doubtful, especially if forecasts of slightly higher international oil prices are confirmed.
The tax hike will, as of Janury 1, increase the Special Consumption Tax imposed on unleaded fuel from 0.67 euro to 0.70 euro per liter, from 0.33 euro to 0.41 euro for every liter of diesel, from 0.33 euro to 0.43 euro for every kilo of LNG, and, as of October 15, from 0.23 euro to 0.28 euro per liter of heating fuel.