The government has renewed lower excise duty rates on diesel, gas oil and biodiesel for a ten-day window, financing the measure with an advance payment obligation on dividend withholding tax for large oil, gas and energy groups.
Italy has extended reduced excise duty rates on diesel fuel, gas oil and biodiesel for the period from 27 August to 5 September, 2026, according to Decree-Law No. 153, published on 26 August 2026 in the Gazzetta Ufficiale della Repubblica Italiana (General Series, No. 197).
Under the decree, the excise duty on diesel used as fuel, along with paraffinic gas oil (HVO) and biodiesel, has been cut to EUR 532.90 per 1,000 litres, continuing a temporary relief measure introduced in response to the ongoing international energy crisis.
The Italian government has funded the reduction through a new advance payment mechanism targeting large groups operating in the oil, gas and electricity sectors. Parent companies with consolidated revenues exceeding EUR 20 billion, and involved in the extraction, production, transport or sale of oil, gas or electricity, are now required to make an advance payment equal to 39% of the withholding tax due on dividend distributions declared in the preceding year. This advance payment must be made by 30 November each year.
The same decree also addresses deductibility rules for the gambling sector. Sponsorship and advertising expenses paid by legal gaming and gambling operators, including odds comparison websites, have been declared non-deductible for both income tax and regional business tax purposes.
The excise duty reduction forms part of Italy’s continuing response to volatility in international energy prices, while the advance payment requirement on large energy groups is intended to offset the cost of the relief within the same fiscal year.
