Brussels prefers “cheques” to the most disadvantaged than a reduction in VAT

published on Monday, January 24, 2022 at 10:59 am

Faced with soaring energy prices which weighs on purchasing power, Brussels recommends directly helping “those who need it most”, by paying “specific checks”, rather than uniformly lowering the VAT on fuels, indicated the European Commissioner Thierry Breton on the antenna of BFM / RMC Monday.

“What weighs the most on households and especially disadvantaged households is the increase in energy, and there we really have to support this global impact very quickly on those who need it most,” said Mr. Breton, Commissioner for the Internal Market and Industry.

“Hence our recommendation, which has been implemented in France in particular, is to have specific checks to accompany it. And it will probably have to be done again until the summer,” he added. .

Asked about the aid of 100 euros for French people earning less than 2,000 euros net per month, announced in the fall by Prime Minister Jean Castex, the Commissioner estimated “that we should not hesitate to do it again”.

On the other hand, on the possibility of a reduction in VAT to 5.5% on fuels – which Brussels could accept by considering gasoline as a basic necessity – Mr. Breton said that its “impact” was “low for the budget and for the consumers compared to other more direct solutions mentioned”.

“I think that today what is really necessary is really to help those who need it the most, there is at least 25% of the French population who must be helped, and I believe that it’s much more efficient rather than doing something one-size-fits-all,” he said.

“Can we go further than the inflation allowance? (…) why not”, reaffirmed at the same time the French Minister of the Economy Bruno Le Maire questioned on the airwaves of France info. If he “dismisses” any reduction in VAT, he considered that “we can consider a specific measure for people who have no choice but to take their vehicle to work”.

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