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e EC plans tax
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breaks to ease unrest
THE EUROPEAN Commission (EC) has been stung into action by Europe-wide unrest over fuel prices, drafting proposals for tax breaks to lower costs at the pumps.
Unusually, EC president Jose Manuel Barroso is co-ordinating the move. He will submit proposals to the EU summit in Brussels on Thursday and Friday (19-20 June). These are likely to free member states from EU restrictions on state aid, allowing them to issue national subsidies to help those hardest hit by the fuel price rises.
Hauliers might benefit from such "targeted support... to those households experiencing the most serious impact".
The EC adds it would table additional proposals later on in the year in order to further revise the Eurovignette and energy taxation directives.
These reforms would provide tax and toll incentives for energyefficiency investments, such as buying new fuel-efficient lorries or adopting eco-driving strategies.
Barroso says: "Rising fuel prices are squeezing the purchasing power of all EU citizens, with the strongest impact on the lowestincome families in Europe." He adds any temporary assistance would need to be part of a longer.. term strategy to protect transport and other fuel users from longterm oil price rises.