PP and Junts introduce an amendment to suspend the tax on electricity generation

The Popular Party and the Junts per Catalunya have agreed and submitted an amendment to the Congress of Deputies to tax on the value of electrical energy productionwhen there is no interest shortfall. This is the bill that regulates the trading regime for greenhouse gas emission allowance trading. Currently the tax is set at 7% and with the approved reform it will move to type 0 as long as there is no interest shortfall.

The reform was discussed in a meeting on Monday afternoon closed door presentation and a priori it would be voted on on Thursday in the Ecological Transition Commission, chaired by former minister Cristina Narbona. However, PP and Junts wrote in the presentation phase a compromise amendment to the account that is included in the textdespite the votes against the PSOE and Sumar. The initiative flourished because it had done just that the support of Vox, ERC and PNVSources from the Popular Group report this.

The Spanish government is against it on the proposal that the PP and the Junts have agreed on, so PSOE and Sumar have decided stop processing it in Congress. According to parliamentary sources, after approving the presentation report, the Commission’s board, where PSOE and Sumar have a majority, convened a meeting at the last minute to postpone the convening of the commission.

The PSOE spokesperson in Congress, Patxi López has pointed it out that the parliamentary discussion on the tax on energy production is still in an ‘early phase’ and that there remains ‘a whole journey’ in which will attempt to ‘reverse or condition’ the agreement that PP and Junts have achieved. In his words, the abolition of this tax means “1.5 billion less” for the state treasury.

The government has previously used its constitutionally recognized right of veto over a Junts amendment aimed at abolishing that tax. Similarly, he also vetoed a PP amendment to temporarily reduce VAT on certain intra-Community supplies, imports and purchases of energy products, as this represents a loss of 2,450 million euros.

For his part, the spokesperson of the Popular Group in Congress, Miguel Tellado, has described the agreement reached as a “parliamentary success.” From the Inform PP that will mean the suspension of this tax an estimated saving of 400 million for families Spanish. In the case of SMEs, the savings will amount to 500 million, and 200 million for large industries. Likewise, they note that the rest of the EU countries do not have this tax, making the Spanish industry “less competitive”.