The average annual consumption of electricity in a home is 3,500 kilowatt hours and the part of the bill that corresponds to VAT is around 10 euros per month. The savings would be between 4 and 5 euros per month. The descent will be approved next Saturday in the extraordinary council of ministers.
The VAT reduction announced by the Spanish government would save about 5 euros on electricity bills. The average annual consumption of electricity in a home is 3,500 kilowatt hours and the part of the bill that corresponds to VAT is around 10 euros per month. With the cut announced by the president of the Spanish government, Pedro Sánchez, the savings would be between 4 and 5 euros per month.
Sánchez announced this Wednesday a reduction in VAT on electricity from 10 to 5% The Executive approves the descent in the extraordinary council of ministers next Saturday
Pedro Sánchez made this announcement during the Government audit session in Congressin response to the spokesperson for ERC, Gabriel Rufiánwho has just asked him to act against the growth of inflation.
In addition, Saturday’s eyes will be on what will be decided on the controversy fuel surcharge From union Hiru, they have warned that there is currently “no strike, but there are professionals who are turning down some jobs because they are not buying them”.
According to the union center, the solution lies in adjusting transport rates to rising fuel prices and tolls.
Associations of transporters from all over the State are asking the government to reward professionals another 20 cents in addition to the general discount of 20 cents per liter, in addition to direct aid of 1,250 euros per truck and 500 euros per van.
Proposals that describe the self-employed as ‘patches that only serve to keep the big oil companies speculating at the expense of public money’.
In his speech, Sánchez recalled that a year ago his government cut the VAT on electricity from 21% to 10% and that he will now approve a reduction from 10% to 5%. “With that, we are going to protect the families of our country,” he said.
The spokesperson for ERC has said that “enough patches and controls” and has asked “taxes on the great fortunes of this country, taxes on major electricity and oil companies of this country, and a real redistribution of wealth through a fair tax system.” “Do what you promised to do, or else the current situation, the cost of living, will devastate you,” he insisted.
Sánchez has asked the ERC and the rest of the parliamentary groups “instead of complaining and criticizing” to support the royal anti-crisis decree that will be approved next Saturday in the extraordinary council of ministers, which will extend the measures in force to crisis caused by the war in Ukraine and will include new ones such as the reduction in VAT on electricity.
“This administration is clearly speaking to the citizens who know that the… origin of inflation in Spain, Europe and the world is a war at the gates of Europe,” said Sánchez.
Likewise, the Spanish president has replied that they intend to end the legislature as they started it: “Protecting the families who suffer” and “making progress in conquests, rights and freedoms”, as he assures that they have the “right to a dignified death.”
Also “opening a dialogue with Catalonia” after the “coexistence crisis” experienced in that autonomous community, especially between 2017 and 2019, and promoting “more solid economic growth based on social justice and solidarity”.
The accumulated cut in VAT on electricity will cost 600 million this quarter
The cumulative reduction in VAT on electricity, from 21% where it was until June last year, to 5%, announced this Wednesday by the government’s president, will cost the tax authorities 600 million euros per quarter, according to calculations by the ministry.
The cost of all tax measures that affect the electricity billwhich also includes the reduction of the special tax on electricity and the suspension of the tax on electricity generation amounts to 1,800 million per quarter.
This measure, which will be included in the three-month extension of the anti-crisis decree that the government will adopt next Saturday, will “undoubtedly” help lower the price of electricity bills, the finance minister defended. Mary Jesus Monteroin statements to the media after intervening in the scrutiny session in Congress.
Montero has pointed out that this new reduction in VAT on electricity is possible because it is allowed by a recent European directive, as 5% is “a different rate than any other” – the much-reduced VAT rate in Spain is 4. %-.
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Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
