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DL Aiuti Bis: proposed reduction of VAT to 10% on pellets

Amendment to lower the price of biomass tabled

Amendment to lower the price of biomass tabled

It is now well known that the price of pellets has reached important levels, doubled in pre-season sales, and further increases are expected due to the scarcity of the material and the increase in demand as it is still cheaper than natural gas. The price of which still tends to rise and, above all, there is a high risk of rationing.

When we buy pellets, however, the price is not only determined by the material itself, but there is the VAT rate, which in this case is 22%. Naturally, an increase in the cost of pellets corresponds to an increase in the consumer's VAT outlay and consequently the state's revenue also benefits. As in the case of fuel, an extra tax revenue is created.

Precisely for this reason, an amendment has been tabled to the Aids Bis decree, which is expected to be converted at the beginning of October, in which a 10% cut in VAT on the price of pellets is foreseen. This measure would not affect the state's current revenue because the price increase has led to higher revenues anyway.

How much would you save with 10% VAT on the price of pellets?

How much would you save with 10% VAT on the price of pellets?

Currently, a 15 kg bag of good quality pellets costs around 10 euros, with fluctuations upwards. On this price, Italians unfortunately pay 2.20 euros in VATwhich is certainly not a negligible amount. By reducing VAT to 10%, Italians would have to pay around 1 euro on the same sack of pellets and could therefore buy pellets for 8.80 euro per sack.

Considering an average consumption of at least 160 sacks in a year, this would mean a saving of about 192 euro. Certainly, given all the price increases, similar help would not be bad.

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