The reduction in the tax burden on fuels will be 34 cents per liter of diesel and petrol in March, the Ministry of Finance said in a statement on Friday.
“In view of all the measures in force, the tax reduction will be 34 cents per liter of diesel and petrol”let the ministry know in the document ‘Government maintains fuel support’.
The tax rate in February was 35.9 cents per liter of diesel and 34.8 cents per liter of petrol, reducing the total tax credit in March as the carbon tax remains suspended, applying 2021 values.
As for the rebates on the ISP (tax on oil and energy products), the executive points out that they are falling in petrol and diesel, compared to February, a decrease “given the evolution of fuel prices in recent weeks”.
The Ministry of Finance also points out that, as announced, the mechanism applicable to the ISP is equivalent to a reduction of the VAT rate from 23% to 13% and the compensation mechanism through the ISP is a reduction of the additional revenue from VAT , resulting from changes in fuel prices.
“Given the recent changes in the price of diesel and gasoline, and compared to the previous month, these temporary measures result in a reduction in the ISP discount on diesel of 1.9 cents and a reduction in the ISP discount of 0 .9 cents per liter of gasoline compared to the previous month”concludes.
Finally, the statement emphasizes the maintenance of the 6 cent reduction in the ISP for agricultural diesel and the maintenance of the suspension of the carbon tax, which translates into an additional reduction of 13.4 cents per liter on diesel and 12.2 cents per liters of petrol. compared to the CO2 tax that would be set in 2023, a discount that includes the relevant VAT.
“So a total of 15.8 cents per liter of diesel and 15 cents per liter of petrol. This discount will remain unchanged from February 2023.”highlights.
Source: DN
