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This is an argument often used by motorist defense associations in particular. To combat the incessant price increases at the pump, why not reduce the amount of VAT from 20% to 5.5%? After all, since the French need gasoline so much, we could consider fuel a basic necessity. Especially not underlines the Council for compulsory levies, an organization associated with the Court of Auditors, in a rapport published today unearthed by our colleagues from Echos.
“Neither effective nor equitable”
This is not the first time that the Council has spoken out on this subject. Already, last February, he spoke on the same subject. He persists and signs today brandishing the same argument, namely that such action is “neither effective nor equitable”.
According to him, “whatever the category of products or services with the exception of tobacco, consumption in euros increases with income. Thus, all of the reduced rates confer a higher gain in euros to the wealthiest households “. To put it another way, lowering the amount of VAT benefits everyone, even those who are not particularly affected by the increase in fuel prices, the wealthy populations. It is for this reason that the CPO finds the fuel voucher more suitable insofar as it is only aimed at those who really need a helping hand.
He also maintains that “part of this decline is captured by businesses”. Just another way of saying that large distributors don’t necessarily need it. What about independent distributors, on the contrary?
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To sum up
Some argue that reducing VAT from 20% to 5.5% would solve the fuel price problem. No, replies the Council for Compulsory Deductions, an institution affiliated with the Court of Auditors.
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