Spain To Extend Tax Cuts On Consumer Energy Bills Until June
Spain News
Published: 03 March 2022 10:44 CET
Spain is to extend tax cuts for consumers in an attempt to cushion the impact of soaring energy bills.
In an announcement on Wednesday, Spanish Prime Minister Pedro Sanchez said that the government would keep the rate of VAT on bills at 10% down from the original 21% until June.
The measure has been extended twice and was due to expire at the end of April.
In a speech to the country's Congress on Wednesday, Sanchez said that a windfall on energy firms who he believes to have benefited from selling at higher rates boosted by the increased wholesale gas prices would remain in place.
A special tax on electricity will also stay at 0.5% rather than reverting to 7%.
Sanchez also called on the country's 17 autonomous regions to take the necessary steps to reduce the burden on the most vulnerable citizens.
Iberdrola, one of Spain's biggest energy companies said on Tuesday that it would be freezing tariffs for domestic consumers who would be exposed to swings in the wholesale market prices.
It comes as European governments seek to reduce the impact on consumers and a further rise in gas prices amid concerns that the invasion by Europe’s top gas supplier could push prices much higher.
Sanchez said that the curbs will also remain on profits from renewable and nuclear energy plants the government believes benefited from selling at rates pumped higher by gas prices without having to pay for carbon emissions permits.
Source
https://uk.finance.yahoo.com/news/spain-extend-energy-vat-cut-102214503.html
https://www.theolivepress.es/spain-news/2022/03/02/pedro-sanchez-announces-electricity-bill-tax-cuts-will-be-extended-in-spain/
Image Credit: La Moncloa
