The floating TIPP

Keywords: tax, petroleum products, oil, fuel, gasoline, diesel, fuel oil, gas oil, diesel.

What is it ? The floating TIPP is a mechanism to make flexible the domestic tax on petroleum products (TIPP) by the government to compensate for fluctuations in oil prices with a flexible and variable fee (prices appear then stabilized at the pump).

At its establishment in July 2000, this floating TIPP allowed the lump sum reduction of the TIPP about 20 cents per liter.

In July 2002, the government announced the elimination of the floating TIPP, which resulted in an increase in the taxation of € 1.55 per hectoliter of diesel.

According to customs, the TIPP at the pump went from 35,49 € / hectolitre in 1997 to 38,90 € / hectolitre in 2002.

Note that this suppression has resulted in increased state revenues of € 500 million and the TIPP reported almost 24 billion annually.

Currently, according to Mr. Dominique Bussereau, Secretary of State for the Budget and Budget Reform, the increase in the price of oil was due to OPEC policy, to the significant consumption of the United States and China. , and international uncertainties. The price at the pump, he said, is currently 10% lower than that seen in 2000, when the floating TIPP mechanism was introduced.

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In addition, the barrel price is very volatile. As a floating TIPP would it be inappropriate and very expensive.

The government therefore does not plan to restore the floating TIPP.

While the floating TIPP raises sterile debates, should we not relaunch another debate in the long term in order to establish a replacement for diesel and a balanced and independent tax?

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