The projected tax expenditure on natural gas for fossil fuel production in Italy from 2024 to 2028 shows a stable trend, maintaining a constant value of 0.002% of GDP from 2025 onwards, down from 0.003% in 2024. This marks a decrease in expenditure compared to previous years, reflecting a consistent phase-out policy. The abrupt decline between 2023 and 2024 indicates a significant policy shift or adjustment in the fiscal approach to fossil fuel incentives.
Future trends to watch for include:
- Potential policy changes in renewable energy support impacting fossil fuel tax expenditures.
- Fluctuations in GDP growth that may affect the relative significance of tax expenditures.
- Global and European energy transition policies that may further curb fossil fuel subsidies.
