Spain will reduce VAT on gas to 5%: this is Pedro Sanchez’s strategy to counter the energy crisis

Spain will reduce VAT on gas to 5%: this is Pedro Sanchez’s strategy to counter the energy crisis
Spain will reduce VAT on gas to 5%: this is Pedro Sanchez’s strategy to counter the energy crisis
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The president of the Spanish government, Pedro Sánchezannounced this Thursday to the microphones of radio Cadena Ser that the government will reduce VAT on gas from 21% to 5% starting from October. This measure will extend until the end of the year, but can also be extended in the following months, “as long as this crisis situation continues,” he said. In Italy, the 5% VAT reduction on methane gas consumption for civil and industrial uses has been in effect since September 2021, with the approval of bill cut decree.

The socialist leader explained that the executive wants to reduce heating costs for citizens, with the aim of protect the most vulnerable families and the middle class which he mentioned nine times during the interview. Although she recognized the uncertainty of an autumn marked by energy crisis and from war in UkraineSánchez asked to do not “fall into catastrophism” and stated that the government does not provide rationing of gas in the coming months. “Ours is a much safer situation than that of other countries,” she said.

This new measure is added to those adopted by the Spanish executive in recent months to deal with the energy crisis and theinflationwhich continues to be double digits even in Spain, but with a slight decline in the last month: from 10.8% in July to 10.4% in August, according to data from the National Institute of Statistics. The ceiling on the price of gas, in force since mid-June, is the most important measure adopted so far and has allowed a discount on consumer bills in recent months. “We calculate that this mechanism is limiting the increase in the electricity bill to around 15%. Between June 15 and August 15 the Spaniards have saved about 1.3 billion euros“, he has declared.

Last June, moreover, the executive had reduced the VAT for electricity from 10% to 5% for the second time (a year earlier it had lowered it from 21% to 10%). At the beginning of August it also approved a energy saving plan which provides for the limitation of air conditioning and heating in public and commercial premises, it turning off the lights in the shop windows shops, but also aid for citizens against rising prices. Among these, the free subscriptions for commuter workers and students, who use local rail transport in large cities or medium-distance regional routes. This measure, which will remain in effect until 31 December, is enjoying great success. “Yesterday we counted half a million registrations and today about 425 thousand citizens can already use this voucher”.

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The measures adopted by the government are consolidating the Spanish relevance in the European panorama. Last Tuesday, Sánchez traveled to Berlin where he took part in a meeting of the German government to discuss the ongoing energy crisis. The purpose of the meeting with the chancellor Olaf Scholz was to create a common front to convince the France from Emmanuel Macron to consider the resumption of construction of the Midcat pipeline (a total of 226 kilometers of pipes are missing), which would connect Spain to France via i Pyrenees Catalans. This infrastructure would allow the Iberian country – which has one third of the regasification capacity of all of Europe – to send gas to the rest of the EU countries. After these pressures, the French Minister of Economy and Finance, Bruno Le Maireannounced that the government will “examine” the request from neighboring countries.

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The article is in Italian

Tags: Spain reduce VAT gas Pedro Sanchezs strategy counter energy crisis

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