The electricity production tax will be progressively reduced and will disappear by 2028

On Monday, the Spanish Council of Ministers decided to gradually abolish the Value Tax on Electricity Production (IVPEE) for the next eighteen months, until it finally disappears in 2028.

The third Vice-President and Minister for the Ecological Transition and the Demographic Challenge, Sara Aages, has announced a 30% tax cutin the third quarter of 2026, a 40% cut in the fourth quarter and 50% in the entire 2027.

The tax will be abolished completely by 2028, which will have an impact on the consumer's electricity bill, which will depend on the type of consumer, although Aagesen has pointed out that in some cases it could reduce the bill to 6%.