The ISP rebate will decrease this month by 0.1 cents per liter of diesel fuel and 4.4 cents per liter of gasoline due to falling fuel prices, the Finance Ministry said.
In a statement, the guardianship explained that “given the recent evolution of the decline in diesel and gasoline prices,” the temporary measures taken to cover the price increase “result in an upgrade of the ISP. a discount of approximately 0.1 cents per liter of diesel fuel and 4.4 cents per liter of gasoline.”
The government’s rebate mechanism assumes that a fall in the price of fuel results in an increase in the Tax on Petroleum Products (NTT) due to a fall in VAT revenues.
“As announced, the mechanism applicable to ISP, equivalent to reducing the VAT rate from 23% to 13%, and the mechanism to compensate by reducing ISP additional VAT revenues arising from changes in fuel prices remain in place. in force,” the government said in a statement.
According to him, “taking into account all the existing measures, the reduction in the tax burden will amount to 28.3 cents per liter of diesel fuel and 26.2 cents per liter of gasoline from October 4.”
The ISP’s rebate, equivalent to a 13 percent VAT cut, was scheduled to last until September 4 but was then extended through the end of the year as part of the government’s family relief package due to rising prices.
In addition, “the renewal of the carbon tax will be suspended until the end of the year,” he recalled.
According to the agency, “the ISP discount applicable to non-ferrous and labeled diesel fuels for primary sector applications (agriculture, aquaculture and fisheries)” will remain “unchanged at 6 cents per liter until the end of the year.”
Author: Lusa
Source: CM Jornal
I’m Tifany Hawkins, a professional journalist with years of experience in news reporting. I currently work for a prominent news website and write articles for 24NewsReporters as an author. My primary focus is on economy-related stories, though I am also experienced in several other areas of journalism.