EU to propose tax cuts to aid those hit by oil prices

TAX reductions and other measures to help the poor and those hardest pressed by rising oil prices, including the fisheries and transport sectors, are to be proposed by the European Commission.

Heating oil has increased by a third in the past year while petrol and diesel has jumped by more than 12%, and this trend will continue, a Commission report warned.

A series of measures to tackle the spiralling cost of fuel that is hitting the EU economy and adding to food prices will be considered by EU leaders when they meet in Brussels in two weeks time.