The third anti-crisis plan, which comes into effect this Sunday, includes the abolition of the universal fuel discount and a 2% cap on new leases
From Sunday 1 January, the measures of the third anti-crisis plan to deal with the consequences of the war in Ukraine, announced by the government last Tuesday, will come into effect. A package of measures endowed with 10,000 million euros, which extends to 45,000 million euros, all disbursed to minimize the cost of the energy crisis in the pocket of the Spaniards.
One of the biggest concerns for households in recent months has been how the increase in energy prices has spilled over to food, with sharp increases now exceeding 15%. To alleviate this, a VAT reduction has been introduced from January to June, months during which this tax is abolished on basic necessities, taxed at 4%. Among them bread, flour, milk, cheese, eggs, fruits, vegetables, legumes, potatoes and cereals. And the oil and pasta have been reduced from 10% to 5%. Other products that are taxed at 10%, such as fish or meat, are not included in the plan. This discount is automatically lifted if underlying inflation – excluding unprocessed food and energy products – falls below 5.5%. It is currently moving at 6.3%.
The decree also includes a social assistance benefit of 200 euros for the 4.2 million families who, according to the government, earn less than 27,000 euros and have assets of less than 75,000 euros.
The 2% limit on the increase in rents in the annual update will be extended until December 31, 2023, when the contracts will be linked to the CPI. In addition, an extraordinary six-month extension will be made available for leases ending before June 30, 2023, to prevent landlords from activating the price in their new contracts. In addition, several measures promoted in the latest royal decree laws within the so-called “social shield” are also extended until June 30, such as the ban on evictions or the launch of homes for vulnerable families.
From this Sunday, the universal bonus of 20 cents per liter of fuel will be abolished, leaving individuals out of the equation. State aid will be limited to the sectors most affected by the crisis, such as transporters, farmers, shipping companies and fishermen. As detailed by the Department of Transport, the bonus for carriers will be divided into two phases: the first will consider a 20 cent reduction per liter consumed between January 1 and March 31, and the second of 10 cents between April 1 and June 30. This support is paid at the end of each month. In the case of farmers, this will be done by paying back the special hydrocarbon tax.
Farmers will also receive a direct aid of 300 million to compensate for the increase in fertilizer costs. Sánchez also announced 450 million for ceramics and 120 million for fishermen.
Support for public transport will be maintained. In concrete terms, the government has approved the extension of the 30% subway and bus subsidies, albeit only for those autonomous communities that contribute additionally to a reduction of at least 50%.
The new plan aims to extend other measures by six months, such as the extension of the social allowance, the 15% increase in the minimum vital income and non-contributory pensions, as well as the tax reductions on the energy bill, for which, among other things, the VAT on the receipt reduced from 21% to the current 5%. The free Cercanías and Media Distancia tickets for frequent travelers have also been extended.
.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
