Factsheet for measure
GR-2022-12/2264
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Updated
– measures in Greece
Subsidy for fuels for low- to medium-income individuals and taxi services
Epidotisi katnalosis kafsimon fisikon prosopon kai miosi timis petrelaiou kinisis
(Επιδότηση κατανάλωσης καυσίμων φυσικών προσώπων και μείωση τιμής πετρελαίου κίνησης)
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Country
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Greece
, applies nationwide
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Time period
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Temporary, 17 March 2022 – 30 September 2022
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Context
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COVID-19, War in Ukraine, Digital Transformation
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Type
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Legislations or other statutory regulations
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Category
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N/A
– Support for fuel expenses
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Author
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Penny Georgiadou (INE GSEE)
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Measure added
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13 May 2022 (updated 26 September 2022)
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Background information
The government, in March 2022, introduced a series of support measures to address the impact of price rises due to the continuing health crisis and the war in Ukraine.
In this context, articles 81, 82 and 83 of Law 4916 (articles 81,82,83) on 28 March 2022 introduced the subsidising of fuel consumption for individuals, reducing diesel fuel prices and also supporting measures for taxi services.
These measures aimed at strengthening the middle class and the lower income households.
Content of measure
The economic measures to subsidize fuel consumption taken by the government, in accordance with law 4916 (articles 81, 82 and 83) as were specified, include the following:
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Direct fuel subsidy to citizens, which covers a part of the price increases for three months. Beneficiaries are individuals, tax residents of Greece, with a declared family income of up to €30,000. It is estimated that 3 million persons having at least one car and low income, can benefit from the measure. The amounts of the total subsidy range from €30 to €50 for the 3-month period (April, May, June), depending on the vehicle and the place of the main residence of the beneficiary. The subsidy is tax-free, non-assignable and non-confiscated. For those beneficiaries that choose to use a digital debit card, the amount of the aid may be increased up by €5. According to the Minister of Finance, the total cost of this support measure is estimated at €130 million.
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Subsidy at the source, from the state budget, on the selling price of the diesel for April, so that the consumer can benefit from a 15 cent per liter. This price reduction is important for containing prices low in the supply chain. According to the Minister of Finance, the total cost of this support measure is estimated at €23 million.
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Aid of €200 to taxi services during the month of April, in order to cover part of the increased fuel costs.
Updates
The following updates to this measure have been made after it came into effect.
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02 July 2022
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The government with the law No. 4950 of 2022 (article 67), renewed the fuel subsidy for the months July, August and September 2022. Beneficiaries of the measure are those who have a declared income of up to €30,000 increased by €3,000 per child and with a limit up of €45,000.
The subsidy can be used with a digital debit card covering €80 for cars and €60 for motorcycles in mainland Greece. On the islands, the subsidy covers €100 for cars and €70 for motorcycles.
If a bank account is used instead of the digital card the subsidy is reduced by €15.
The potential beneficiaries of the measure are estimated at 3.1 million persons out of the 3.5 million vehicle owners.
The total cost of the fuel subsidy has been estimated at €200 million.
For the diesel users, the subsidy remains at 15 cents per liter at the source of the consumption including VAT. The total cost of this specific measure is estimated at €115 million.
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Use of measure
According to the Minister of Finance, 3 million persons owning at least one car and declaring a low family income will receive support. Especially for the taxi services, the Ministry of Finance until April 20, paid a total amount of €3,935,800 to 19,679 beneficiaries of the Special Purpose Compensation in taxi services.
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: N/A
Involvement
There was no involvement of social partners.
Views and reactions
Before the announcement of the measure the taxi drivers associations have generally asked for the coverage of the cost from the increase of the fuel prices. After the measure there was no reaction by the taxi drivers.
Sources
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17 March 2022: Press Release: Statement by the Minister of Finance, specification of the support measures to address the impact of price rises on citizens
(www.minfin.gr)
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23 March 2022: Press Release. Speech by the Minister of Finance at the Plenum of the Parliament
(www.minfin.gr)
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28 March 2022: Law 4916/2022 at 28th March 202
(www.e-nomothesia.gr)
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20 April 2022: Allowance of 200 euros in a taxi: The money enters the bills toda
(eleftherostypos.gr)
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26 April 2022: The Fuel Pass for the fuel fuel subsidy is in operation through vouchers.gov.g
(www.mindev.gov.gr)
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02 July 2022: Fuel Pass
(www.news247.gr)
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02 July 2022: Law 4950 of 2 july 2022
(www.karagilanis.gr)
