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Fiscal measures
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The Council of Ministers has been postponed because the Ministers of Summary have opposed excluding the extension of rent from the decree

Pending this meeting, the Decree-Law on the Table of the Council of Ministers contains a package of fiscal measures which, among other things, would result in a reduction of VAT on fuel, electricity and gas to 10%. 

MADRID, 18/03/2026.- El presidente de Gobierno, Pedro Sánchez, durante su intervención en la sesión de control al Ejecutivo que se celebra este miércoles en el Congreso. EFE/ Mariscal
Pedro Sanchez, this week in the Congress of Deputies. Photo: EFE.

The extraordinary Council of Ministers to deal with the decree to deal with the crisis caused by the Iranian war has been postponed because the members of the Summa have refused to join the meeting, while the extension of rental contracts and measures to control the margins of companies are excluded from the decree. 

The Council of Ministers was scheduled to begin at 9.30 a.m. and the President of the Spanish Government, Pedro Sánchez, was expected to appear. For the time being, however, the meeting has not even begun and will not begin until the negotiations that have intensified since yesterday are unblocked.

Pending the holding of the meeting and what may happen there, sources familiar with the content ofthetext and advanced by Chain Ser have confirmed to the news agencies that the decree law to be adopted by the Special Council of Ministers will focus on a package of fiscal measures. 

According to this, the package of measures to alleviate the effects of the war in the Middle East will reduce the VAT on automotive fuels, electricity and natural gas, moving from the general rate (21%) to the reduced rate (10%).

To deal with fuel prices, in addition to lowering VAT, theGovernment will reduce the Hydrocarbon Excise Rate :  is currently EUR 0.379 per litre of diesel and EUR 0.47269 per litre of petrol.

Thus, unsurprisingly, the Government will definitively renounce the 20-cent bonus that was applied in the inflation crisis of the Ukrainian war, which, as several members of the Government have been pointing out these days, had a distorting effect.

In addition, the Sánchez government will abolish the electricity generation tax , which is 7% and is paid by companies, and reduce the special electricity tax, which is 5.11% and is paid by consumers.

To strengthen the social shield, the decree improves the electric social bond – according to ERC, the discount would be 42.5% for vulnerable consumers and 57.5% for vulnerable extremists – and would guarantee the supply of water and energy. 

They would also include a 15% IRPF deduction on the purchase of electric vehicles, a measure that failed to comply with the "omnibus" decree. 

(We're working to complete the information.) 

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