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| Version 0 | Version 1 |
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| Sarkozy suggests cap on fuel tax | Sarkozy suggests cap on fuel tax |
| (about 1 hour later) | |
| The French president has suggested that the EU should consider capping value added tax on fuel to help countries deal with surging oil prices. | The French president has suggested that the EU should consider capping value added tax on fuel to help countries deal with surging oil prices. |
| Nicolas Sarkozy warned there was no sign the oil price would dip and urged EU member states to consider his idea. | Nicolas Sarkozy warned there was no sign the oil price would dip and urged EU member states to consider his idea. |
| Fishermen across France are continuing to blockade ports and fuel depots in protest at rising diesel costs. | Fishermen across France are continuing to blockade ports and fuel depots in protest at rising diesel costs. |
| Mr Sarkozy said France, due to hold the EU's rotating presidency from July, was not alone in suffering high fuel costs. | Mr Sarkozy said France, due to hold the EU's rotating presidency from July, was not alone in suffering high fuel costs. |
| Fighting inflation | |
| "If the barrel continues to rise, must we maintain a VAT rate that is proportional to the price in the same conditions?" Mr Sarkozy said in an interview with French radio station RTL. | |
| I gather that France is not the only country confronted by the rise in the price of oil Nicolas Sarkozy | |
| French consumers pay almost 20% VAT on the price of oil, which has risen to more than $130 (£65; 82 euros) per barrel. | French consumers pay almost 20% VAT on the price of oil, which has risen to more than $130 (£65; 82 euros) per barrel. |
| Mr Sarkozy has indicated that he would like the sales tax brackets within the EU to be reviewed. | Mr Sarkozy has indicated that he would like the sales tax brackets within the EU to be reviewed. |
| "Naturally, I can't decide it on my own," he said. "But I gather that France is not the only country confronted by the rise in the price of oil." | "Naturally, I can't decide it on my own," he said. "But I gather that France is not the only country confronted by the rise in the price of oil." |
| The EU said such proposals would not be the best way to respond to high energy prices. | |
| Commission taxation spokeswoman Maria Assimakopoulou said any change to the way VAT was calculated on fuel would need a proposal by the EU executive and a unanimous vote by member states. | |
| "The question of taxes comes up very often but still we have doubts if it is the best way to react in these cases," she told Reuters. | |
| A commission spokesman on energy said the best way to offset rising fuel costs would be to enable the fishing industry to pass on the increases to consumers. | |
| Fishermen's friend | Fishermen's friend |
| Fishermen in Portugal and Belgium are also reported to be planning protests and Italy's Federation of Fishing Co-operatives is due to meet on Wednesday to discuss possible strike action. | Fishermen in Portugal and Belgium are also reported to be planning protests and Italy's Federation of Fishing Co-operatives is due to meet on Wednesday to discuss possible strike action. |
| Protest action has been going on for more than two weeks | |
| The cost of a litre of diesel fuel for fishing boats in France has risen from 0.45 euros (70 US cents; 35p) to 0.70 euros ($1.10; 55p) in the past six months. | The cost of a litre of diesel fuel for fishing boats in France has risen from 0.45 euros (70 US cents; 35p) to 0.70 euros ($1.10; 55p) in the past six months. |
| Fishermen in Channel ports including Calais, Dunkirk, Dieppe and Boulogne are continuing their strike, blockading access into the ports. | Fishermen in Channel ports including Calais, Dunkirk, Dieppe and Boulogne are continuing their strike, blockading access into the ports. |
| They say the increase in diesel fuel costs will push them out of business. | They say the increase in diesel fuel costs will push them out of business. |
| Depleted fish stocks mean trawlers have to use more fuel to sail further out to sea, and strict EU fishing quotas mean the fishermen are limited in the amount they can catch and sell for profit. | Depleted fish stocks mean trawlers have to use more fuel to sail further out to sea, and strict EU fishing quotas mean the fishermen are limited in the amount they can catch and sell for profit. |
| Mr Sarkozy also said he was looking into how money from sales taxes on oil could be channelled back towards those hardest hit by the price rises. | Mr Sarkozy also said he was looking into how money from sales taxes on oil could be channelled back towards those hardest hit by the price rises. |
| The French president suggested this might amount to as much as 170m euros ($268m) each quarter. | The French president suggested this might amount to as much as 170m euros ($268m) each quarter. |
| "I would like to use all this money to finance aid," Mr Sarkozy said, adding that while haulage firms could put up their prices for customers, those in the fishing industry were in a more difficult position. | "I would like to use all this money to finance aid," Mr Sarkozy said, adding that while haulage firms could put up their prices for customers, those in the fishing industry were in a more difficult position. |
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