Italy to reverse VAT tax on pellets

Italy to reverse increased VAT tax on pellets back to 10 percent 

The VAT tax was raised to 22 percent in January 2015, but it was a misstake the we will correct says the economic development ministry. The change to 10 pc tax is included in the government’s draft financial law bill and will be further processed by parliament during November and December and is expected to come in force by January 1 2016.

As a result of the 2015 tax increase,  the mild winter and low oil prices the sales of pellets for residential heating is calculated to fall with 400 000 tons compared with expectation during 2015, says Analisa Paniz, pellet expert in AIEL, the leading bioenergy business association in Italy.  Consumption of wood pellets in Italy will probably reach around 2.6 milj tons in 2015 according to Paniz.

In the neighbour country Austria VAT on pellets instead will be raised from 10 percent to 13 percent by January 1, according to proPellets executive director Christian Rakos.

art 3540/LLj