VAT on gas will be reduced to 6% from April until 30 September. The VAT on electricity had already been reduced previously. The measure will also be extended until the end of September. People who heat with oil will benefit from a reduction of 200 euros on their bill.
For diesel and gasoline, which reached record amounts last week, a reduction in excise duty will be applied by 0.175 euro per litre, which represents approximately 10 euros on a full 60 litre. A reverse ratchet system must intervene from a 1.7 euro / liter. An evaluation is scheduled for mid-June.
As for the extended social tariff, which benefits one in five households, it is extended until September 30.
The total cost of the measures is estimated at 1.3 billion euros. It is largely financed by the additional tax revenue induced by the rise in prices, ie 1.08 billion euros. This effort is in addition to the 1.1 billion euros of support decided in February.
In addition, the government has decided to extend exceptional temporary unemployment until June 30 in order to help companies that are in difficulty following the Ukrainian crisis and the sanctions imposed on Russia.
The measures will be presented Tuesday at 9:30 am during a press conference at the Prime Minister’s Office.
