BRUSSELS: The European Union should urgently cut fuel taxes, taking cue from a US plan unveiled by President Joe Biden last week, according to the biggest political group in the European Parliament.
To stem the impact on consumers from soaring petrol and diesel prices, the European Commission should accelerate the assessment of national government’s requests for tax cuts and exemptions and propose new tools, the European People’s Party chairman Manfred Weber said.
Leaders of the 27-nations bloc discussed the record energy costs, which are fuelling inflation, at their meeting last week, but stopped short of pushing for new containment measures.
"Europe can no longer afford this inaction, especially in view of the recent proposals of the Biden administration on the other side of the Atlantic,” Weber wrote in a letter to EU Economy Commissioner Paolo Gentiloni.
"The EU should therefore follow the US example and provide some direct relief to European citizens through a similar ‘holiday on fuel taxes’ within the existing EU taxation framework.”
Biden issued last week a statement calling on Congress to enact a three-month federal gas tax holiday, blaming high prices and supply shortages on Russia’s war in Ukraine.
If enacted, the move would waive the 18.4-cent national tax currently tacked onto each gallon of gasoline sold through September, and 24-cent-tax on diesel.
US national average gas prices are currently US$4.86 a gallon, just shy of the record from earlier this month, according to the American Automobile Association.
In Europe, average gasoline price was 2.02 euros per litre and diesel cost 2.04 euros per litre as of June 27, according to data compiled by the commission.
"We have to make sure that Europe’s most vulnerable citizens, in particular low-income families, can still afford a summer holiday,” Weber said.
"Moreover, we have to enable the tourist sector, especially in those member states, which are highly dependent on tourism, to finally profit from an unclouded holiday season.”
