World economy: Hungary requests an exemption from the increase in the excise tax on fuels
Gasoline and diesel are subject to different tax rates, Hungary has been setting a tax level corresponding to the minimum level for gasoline for years, and for this a fixed distance in the diesel tax rate is necessary.
However, if according to the regulations, the tax rate should be increased, then the tax for gasoline will rise from the current 0.28 euros per liter to 0.6 euros, and for diesel from 0.26 to 0.33 euros.
This paid a total tax increase of HUF 32.5 (for the calculation, the euro-forint exchange rate on October 3, 2022 must be taken into account).
If the Union approves the Hungarian request, then Hungary will maintain the current excise duty rates until the end of next year, but there is a chance that, like the other member states, Hungary will be allowed a maximum of six months. The Hungarian government justified the longer period of six months by saying that due to the unfavorable forint exchange rate in October, the need for a drastic increase will continue throughout next year, and the energy tax directive even allows for an annual derogation.
The deadline for evaluating the derogation request is three months after the receipt of all appropriate and necessary information.
Cover photo: Dimitri Vervitsiotis, Getty Images