Oil price, “government’s†fault
26/08/2011 15:15
119 convicts are released from Fier prison today, others benefit from Criminal Amnesty in reduced sentences 24/04 15:47
The new gas tax increase of 6 ALL per liter is the last measure in a
years old policy that has always gone toward one direction… that of
increasing the fiscal burden.
Official data show that compared to 2005, the government has increased gas taxes with 20 ALLl.
This is a direct increase, without including the additional revenues that the government makes from increasing the price.
The story starts with the excise, which in 2005 was at 27 ALL per liter.
Since then, the government has increased the excise to 37 ALL per liter, which is the current level.
This was only the first step that was followed by others, following that same direction of increasing the tax burden.
After the excise, the government intervened with the CO2 tax, increasing it from 1 to 3 ALL per liter.
Right after this tax, a few days ago entered in act a new tax, called “circulation tax”, which has not existed before, but now will be at 5 ALL per liter.
In total, the direct increase from the excise, CO2 and circulation tax is 17 ALL per liter.
To this fiscal burden is aso added VAT, with 3.4 ALL more, bringing it to 20.4 more ALL than in 2005.
Besides these direct price increases, the government has also benefited from the oil price hikes in the market, which enables it to collect more money through VAT.
As result, the government takes 90 ALL for every liter of oil that they buy in the market.
This means that half of the oil price is the cost of transport, production and revenues of the seller.
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