Congress ratifies the anti-crisis decree, which includes the reduction of VAT on olive oil

This Tuesday, Congress ratified the decree-law that extends a number of measures implemented to mitigate the economic consequences of the conflicts in Ukraine and the Middle East and includes new measures, such as the reduction of VAT on olive oil, all of which are already in force.

The decision also provides for the gradual phasing out of electric social bonusalthough the Spanish government and Podemos have agreed to maintain this reduction, a measure that will have to be included in another regulation, since Congress cannot modify the decree law, but only validate or reject it.

– He olive oil has been permanently integrated into the group of basic foodstuffs – which also includes milk, bread, eggs and fruit – which will remain exempt from VAT until 30 September, and will then be taxed at 2% until the end of the year. back to the usual rate of 4%.

– He VAT for pastes and oils of seed will maintain the current rate of 5% until September 30, then pay tax at 7.5% until the end of the year, returning to 10% in January.

– Reduction of personal income tax to exempt those earning the minimum interprofessional wage (SMI), for which the tax threshold is increased to 15,876 euros per year.

– Extension of the guarantee of water and energy supply for vulnerable consumers until December 31, 2024.

– Extension until the end of the year of the flexibility to cancel, without penalty, the power of electricity supply contracts.

– The right of access to information becomes indefinite. Last Resort Rate (TUR) for natural gas for communities of owners with collective heating and water.

– Although the Spanish government and Podemos have agreed that it will not be applied, the decree includes the gradual reduction of the electric social bonus on a quarterly basis of 7.5% until July 2025, it remains 35% for vulnerable consumers and 50% for severely vulnerable consumers (compared to 25 and 40% respectively before the energy crisis).

On the other hand, the plenary session of Congress approved the agreement judicial reform agreed by PP and PSOEin the context of his agreement to renew the General Council for the Judiciary (CGPJ). This completes its passage through the House of Representatives and it is sent to the Senate to continue parliamentary treatment.