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MEASURES TO ADDRESS THE CRISIS

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VAT on light and gas returns to 21% on Monday

The Spanish Government decreed a tax cut in March on the occasion of the war in Iran, which expires on Monday, although the tax measures on fuels and the Value Tax on Electricity Production will be in effect until June 30.

¿Cómo impactará la situación de Oriente Próximo en las facturas energéticas?

Electricity and gas bills will rise again from this Monday because thetax cut  will end .

Theanti-crisis plan  for the war in Iran was launched by the Spanish Government in March, with a reduction in VAT.

Indeed, the fall in electricity and natural gas prices in April makes it possible to reverse the Excise Duty on Electricity  (which fell from 5.11% to 0.5%) and the VAT on electricity and natural gas, as well as briquettes, pellets and wood(which fell from 21% to 10%).

The April Consumer Price Index (CPI) stood at 3.2%, confirming, according to the government, that the measures put in place in Spain are "working," without which inflation would be one point higher.

Measures that will remain in force until 30 June

However, not all measures will be suspended this Monday.  Measures relating to the Value Tax on Electricity Production, for example, will remain in force until 30 June.

Tax measures on fuels - reduced rates of hydrocarbon tax, 10% VAT on petrol, diesel and biofuels and partial repayment of professional diesel - will also be in force until 30 June.

Sectoral measures such as support for farmers and hauliers and enhanced discounts on the electric social bond (42.5 per cent for the most vulnerable consumers and 57.5 per cent for the most vulnerable) will also be maintained.


  
The Spanish Government will also continue to monitor price developments and will continue to meet with the social partners and the sectors most affected to see whether it is necessary to continue to maintain, eliminate or put into effect some measures from 30 June.

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