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Italian Watchdog Slams 'Anti-Competitive' Gas Tax

by Ulrika Lomas, Tax-News.com, Brussels

23 May 2002

Italy's Energy Authority announced on Tuesday that it will be seeking help from the government and the European Union following the imposition of an 'anti-competitive' environmental tax on gas networks by regional authorities.

On April 1, the Sicilian regional government imposed a tax of 130 million euros for its pipelines crossing the island on gas network company, Snam Rete Gas. Recent reports have suggested that Venice is also considering implementing a new gas tax.

However, according to the energy watchdog, the new taxes represent a breach of the country's rules on competition in public services. In a statement released earlier this week, it argued:

'The authority maintains that the taxes announced are in contrast with the principles and objectives of the promotion of competition among public services.' The statement went on to suggest that in addition to this, the new taxes 'do not respect a European directive that foresees a free gas market.'

The Energy Authority revealed that it is currently 'evaluating the actions within its power including a formal notice to government, parliament and the European Commission to protect consumers who use these services'.

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