Healthplan Spain


Spain To Cut Tax On Electricity Bills From 10% to 5% On Saturday Spain News

Spain’s Prime Minister Pedro Sánchez has announced that the IVA tax on electricity bills is to be slashed from 10% to 5% this Saturday.

The move which will be a welcome relief to Spanish households will first need to be approved by the Cabinet of Ministers but is expected to be a formality.

The reduction will save consumers around six euros on the average electricity bill of 124 euros.

It will mean that Spain will have one of the lowest rates of tax on electricity bills within the EU along with Greece (6%) and Malta (5%).

Sánchez put the rising cost of living down to the conflict in Ukraine and emphasised that the government would continue to provide the necessary support to help families and businesses to deal with the financial pressures.

A year ago we lowered the VAT on electricity from 21% to 10%. In the next meeting of the Council of Ministers, we will reduce it from 10 to 5% to continue protecting citizens from the effects of war.

We hope that all parties support the measure for the benefit of families, businesses and industries in the country.

However, there has been some resistance to the move from coalition partners Podemos who claim that the measures would be insufficient.

Pablo Echenique, a spokesperson for Podemos in Congress, demanded more “courageous” solutions from the Prime Minister.

"It is a measure by the PSOE that is not bad, but that we believe is insufficient for the measures and to recover the political initiative," he said.


Image Credit: Congress Pool. Congress of Deputies, Madrid 22.6.2022