Italian motorists have been queuing for petrol throughout the country following a steep in fuel costs.
GV Motorway signpost, PULL BACK & PAN TO motorway.
GV & PAN Cars at petrol pump.
CU Petrol pump showing 1.120 lira per litre (new price), PULL BACK & PAN TO cars outside filling station.
GV Another service station with cars filling up.
CU Petrol pump showing old price of 1,020 lira per litre.
GV Cars queuing.
CU Price on petrol pump.
GV & PAN Cars queuing for petrol in street.
Background: Italian motorists have been queuing for petrol throughout the country following a steep in fuel costs. These are part of a series of tax increased which are expected to raise 38 billion dollars over a period of 18 months. The most immediate impact for the Italian people will come from widespread increases in indirect taxation. Petrol goes up by 100 lira to 1,120 lira (82 cents) per litre. This increase is expected to provide the major part of the additional finance for the country's treasury. Most rates of value-added tax will also rise by two or three per cent. The tax on luxury goods such as imported spirits and jewellery goes up from 35 to 38 per cent. Social security contributions by employers have also been increased. The private sector has warned the government that the measures will raise labour and production costs and lower public demand - a situation which will almost certainly lead to an increase in the number of unemployed. The Prime Minister referred to the measures in a television speech on July 31 as "severe" but necessary.