Incentivising Green Choices: Spain Announces 15% Tax Break For Electric Car Buyers
Spain News
Published: 27 June 2023 14:17 CET
Spanish President Pedro Sánchez has revealed that today, June 27, the Council of Ministers will incorporate a 15 percent personal income tax deduction for purchasers of electric vehicles until December 31, 2025.
The move aims to promote the "green transition" and will be included in a new decree designed to address the economic consequences of the war in Ukraine. During an interview with Cadena Ser, President Sánchez also announced a line of guarantees from the Official Credit Institute (ICO) to support young individuals or families with dependent minors in purchasing homes.
Regarding the surge in variable mortgages, Sánchez expressed his reluctance to allocate public funds to the financial sector as a solution. He said that he was “a little in favour of giving economic resources from the public to the financial sector.
“I don’t think it’s the solution, I think we have to urge the financial sector to obviously facilitate this transition from the variable rate to the fixed rate in a context of tightening monetary policy”, he continued.
The government had previously issued a special bond of 1,000 euros to aid vulnerable families in paying their mortgages amidst the significant rise in interest rates. Sánchez stressed the importance of policies that facilitate home acquisition, citing the ICO's line of guarantees as an example.
President Sánchez emphasised that the forthcoming decree will introduce new measures aimed at extending the reduction in VAT on essential food items and providing assistance for public transportation costs. He underlined the positive economic growth and job creation in Spain, stating that the country is outpacing other European nations in these aspects, with job opportunities not seen in decades. Furthermore, he emphasised the government's commitment to redistributing this growth for the benefit of the population.
However, the anticipated decrease in food prices has not materialised at the expected rate. Sánchez attributed this situation to various factors, including the challenges in exporting grain and the adverse effects of the climate emergency, leading to a year-long drought in Spain.
Acknowledging the difficulties faced by citizens, Sánchez affirmed that all available resources would be dedicated to addressing these issues. He reassured the public that the government would deploy public policies that aim to improve the lives of individuals directly or indirectly affected.
In an unrelated matter to the crisis measures related to the war, Sánchez also announced that the upcoming decree, to be approved by the Council of Ministers, would reintroduce the right to oncological oblivion. This measure had previously been committed to but was unable to be implemented due to the dissolution of the Cortes Generales following the elections, as reported by 20minutos.es.
Sources
https://euroweeklynews.com/2023/06/27/spanish-government-to-offer-15-personal-income-tax-deduction-for-buyers-of-electric-vehicles/
https://www.20minutos.es/noticia/5141683/0/gobierno-aprobara-este-martes-una-deduccion-irpf-15-para-quien-compre-vehiculo-electrico-hasta-2026/
