ROME, March 4 (Reuters) - Italy is ready to hike taxes on companies that take undue benefits from the rise in gas prices triggered by the Middle East crisis, Prime Minister Giorgia Meloni said on
Italy May Raise Taxes on Energy Firms Profiting From Price Speculation
Government Response to Energy Price Speculation
Prime Minister Meloni’s Position on Gas Price Increases
ROME, March 4 (Reuters) - Italy is ready to hike taxes on companies that take undue benefits from the rise in gas prices triggered by the Middle East crisis, Prime Minister Giorgia Meloni said on Thursday.
In an interview with radio broadcaster RTL 102.5, Meloni also reiterated Italy was in favour of freezing the ETS carbon-permit scheme to soften energy bills across the European Union.
Measures to Prevent Market Speculation
"We will do everything we can to stop speculation. I am ready to react, if necessary, even by raising taxes on companies that may speculate on prices through energy bills," Meloni said.
Recent Tax Increases and Financial Impact
Her remarks come just a few days after Italy increased its IRAP corporate tax on energy firms to help fund an aid package for families and businesses, in a move that would yield state coffers around 1 billion euros ($1.16 billion) through 2028.
European Union Policy and the ETS Scheme
EU leaders are assessing ways to curb volatility in the EU carbon market, as part of a revision of the market planned for later this year.
Meloni said the ETS scheme should be reviewed to avoid affecting companies producing energy from renewable sources.
Understanding the Emissions Trading System (ETS)
The Emissions Trading System (ETS), which is the EU's most important climate-change policy, forces power plants and industries to buy CO2 permits when they pollute - and caps the number of permits in the market - to curtail emissions over time.
"We have always called for the cost of ETS to be separated from the pricing of renewable energies such as hydroelectric and solar power, in order to lower energy costs," Meloni said.
Criticism and Controversy Surrounding Recent Policies
Italy, however, triggered widespread criticism last month for adopting a reimbursement scheme benefitting thermoelectric producers, with green energy advocates saying the move would favour fossil-fuel-based producers.
($1 = 0.8617 euros)
(Reporting by Claudia Cristoferi and Giuseppe Fonte, Editing by Alexandra Hudson)
