22 July 1998

France plans to increase its TIPP tax on diesel fuel in 1999, bringing it gradually into line with taxes on gasoline, budget secretary of state Christian Sautter told a budget news conference on Wednesday.

He said France planned to bring the difference in taxation of lead-free gasoline and diesel into line with the European Union average within seven years. The difference in France is currently 1.43 francs per liter compared with a European average 0.93 francs per liter.

The first step would be a seven centimes increase per liter in diesel tax next year, with no increase in tax on lead-free super grade gasoline, he said.

Source: Reuters