Expensive fuel prices in Ticino: tax reduction request (cross-border guide)

Context

In brief

• Sharp rise in gasoline and diesel prices
• Motion submitted by Lorenzo Quadri
• Requested tax relief on fuels
• Temporary measures against cost of living

Key facts

• Proponent: Lorenzo Quadri
• Recipient: Federal Council
• Price of 95-octane gasoline (end February 2026): 1.67 francs per litre
• Price of 95-octane gasoline (17 September): 2.10 francs per litre
• Record diesel price: 2.41 francs per litre
• Mineral oil tax: about 4.4 billion francs per year
• CO2 tax: 120 francs per tonne

Petroleum product prices continue to rise sharply, exerting strong pressure on citizens' purchasing power and on the entire Ticinese and Swiss economy. The situation has prompted Lega national councillor Lorenzo Quadri to submit a motion to the Federal Council requesting an immediate and temporary intervention to alleviate the tax burden weighing on fuels and heating oil. The legislative proposal follows a similar parliamentary act presented by Lega coordinator Daniele Piccaluga, who acted at cantonal level, asking the State Council to act on fiscal levers, such as increasing deductions for professional expenses. As highlighted in the text of the federal motion, the objective is to temporarily suspend the collection of at least part of the mineral oil tax destined for the Confederation's general coffers, of VAT and of a share of the CO2 tax applied to heating oil. This measure aims to mitigate the impact of the price increase for consumers, businesses and craftsmen, at a time when energy costs risk negatively affecting the whole economic chain.

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Operational details

The impact of energy price increases and the comparison with neighboring countries highlight the operational difficulties faced by Swiss distributors located in the border area. The motion submitted in Bern draws attention to the policies adopted by the governments of several European nations, including the states bordering Switzerland, which regularly apply discounts or reductions on fuel prices to support households and economic operators. This disparity in tax treatment puts Swiss operators in the border region at a clear disadvantage, forced to compete with foreign competitors strongly favored by lighter tax regimes. To delve deeper into the overall economic impact of daily expenses and the cost of living, you can consult the available analysis tools such as the cost of living Ticino vs Italy to assess real differences on the ground.

The weight of heating oil and the CO2 tax

Besides motor fuels, the request for tax relief advanced to the Federal Council also directly concerns the domestic and industrial heating sector. The CO2 tax levied on heating oil is currently set at 120 francs per tonne of emitted carbon dioxide, an amount corresponding to about 32 cents per litre of heating oil consumed. According to the motion's text, in an exceptional economic phase, the federal administration should temporarily waive part of these high tax revenues. The declared aim is to give financial breathing space not only to those obliged to use a car daily to get to work, but also to craft and commercial enterprises suffering from increased fixed operating costs. For those who face daily cross-border commuting and wish to plan their transport-related expenses precisely, it is useful to regularly check the options for calculating and managing transport costs via the commuter car cost.

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Key points

The institutional procedure initiated with the filing of the motion by Lorenzo Quadri now requires formal examination by the Federal Council, called upon to express its opinion on the sustainability and on the advisability of temporarily suspending tax levies on hydrocarbons. Meanwhile, workers and residents who suffer the combined burden of energy inflation and taxes need to closely monitor the evolution of the regulatory and fiscal framework at both the federal and cantonal levels. The proposals made at the local level, such as the increase in the possibilities of deducting professional expenses discussed at the cantonal level, represent an alternative channel of intervention that deserves to be closely followed by taxpayers to optimize their annual tax burden.

How to check the impact on your income

Faced with significant changes in the cost of living and fuel prices, the careful management of their net income and tax deductions becomes a fundamental step to protect their purchasing power. Workers operating between Switzerland and Italy can analyse their contribution situation, payroll withholdings and deductible tax items in detail using dedicated simulation tools. For a timely verification of withholdings and taxes applied to your income from work, we invite you to use the calcolatore fiscale.

Source: laregione.ch