The Council of Ministers approves the extension of the decree-law until December 31, with the reduction from 10% to 5% VAT on electricity and the bonus of 20 cents per liter of fuel
Just five days before the government’s anti-crisis plan to mitigate the effects of the war in Ukraine expires, the Council of Ministers met extraordinary this Saturday to approve the extension, which in this case will not be just three months, but will run. until December 31, as confirmed Friday by President Pedro Sánchez.
Six more months and new measures to try to inject an oxygen balloon into family economies badly hit by this endless escalation in inflation, which can no longer be considered indirect and which looks set to last at least until the end of the year. In order to protect households, industry and companies against this price increase, in addition to measures such as the discount of 20 cents per liter of fuel, the ceiling on rent or the ban on redundancies, the council is taking new measures such as a new reduction in VAT on electricity, from 10% to 5%, and support for public transport subscriptions.
During his intervention, Sánchez assured that these measures manage to limit the price increase by 3.5 points, that is, if this plan had not been implemented, the Executive’s calculation is that the CPI would be 3.5 points higher than the current , with rates close to 14%.
This extension of the decree will have a budgetary cost of more than 9,000 million euros. The president explained that 5,500 million of them are actually being spent to implement the measures that protect families, the working class and the most affected sectors, and another 3,600 million in reduced revenues due to tax cuts. Together with the first decision, the total expenditure for the State in 2022 will have been approximately 15,000 million euros, more than 1% of GDP.
One of the measures in the air was that of public transport, which was finally approved in the Council of Ministers, a 50% discount on all monthly subscriptions and any land tickets, in addition to the 30% discount on subscriptions of the autonomous communities. The measure applies from September 1 to December 31.
Source: La Verdad
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