To maintain the competitiveness of their national businesses and the purchasing power of their citizens, many European Union countries have reduced excise duty rates on energy resources, such as Germany, Italy and Ireland; meanwhile, Hungary has set a maximum price for fuel sales, Poland has also cut its value-added tax rate, and Latvia is taking a different path, promising support for low-income earners

This is shown by the BDO study. As prices for natural gas and electricity rose rapidly in European Union member states, the European Commission issued a communication in March 2022 on the security of energy supply and affordable energy prices. It proposed options for mitigating the impact of high electricity prices on citizens and businesses. Several EU countries have already introduced reduced VAT rates for gas, electricity and/or district heating. However, some countries have not fully utilised these opportunities. And although the European Union has set minimum excise duty rates for energy resources, in some member states these tax rates are even lower than the minimum rate permitted by the EU. (...)