Italy approves 14 billion euro energy aid package

In his last formal act before national elections later this month, Italy's Prime Minister Mario Draghi and his cabinet approved a 14-billion-euro package on September 16, aimed at cushioning the impact of spiking energy prices on companies.

The package includes tax credits, tax cuts on energy, and a variety of incentives and bonuses, Xinhua reports.

Draghi said the measure would not increase the government's deficit since it would be offset by the higher tax revenues of recent months due partially to increased taxes on energy, the price of which has soared since the start of the conflict between Russia and Ukraine in February.

The tax credit will reduce the tax bill for companies in energy-intensive sectors by 25 per cent, and by 15 per cent for other companies that use more than 16.5 megawatts of power through September 30, with the credit increased to 40 percent in October and November.

Additionally, excise taxes on diesel and petroleum will be reduced through the end of November, though details on this reduction will be published in a future ministerial decree.

The package also includes a one-time bonus of 150 euros to all citizens earning less than 20,000 euros per year, as well as 190 million euros in aid to farmers struggling with high energy costs, and another 100 million euros to help offset higher fuel costs for mass transit systems.

The package also includes an array of incentives for the development of renewable energy generation.