Spain will reduce the gas tax from 21 to 5 percent as energy prices spiral.
Pedro Sanchez, Prime Minister of Chile, has declared that he will reduce the IVA sales tax at least until the year’s end
Pedro Sanchez, pain’s PM has announced that he will reduce the IVA sales tax on gas bills, from 21% to 5%, at most until the end, due to the change in gas prices in international markets which set a new record last August.
Russia’s decision not to build gas pipelines to Germany and France has impacted the international gas market. This has caused electricity bills to soar as raw material is used in power plants to create electricity.
Minimum permissible by EC
The IVA reduction for gas bills in Spain would be combined with the sale tax cut of 10 to 5% on electricity bills in spring. It is the minimum allowed tax by the European Commission.
Despite all the efforts made by the Government to limit electricity and gas bills over the past year, the reality has overturned many of these effects. Pedro Sanchez stated that although prices have increased this summer due to the Iberian caps being in place since 15 June, the price increase would have been 15% higher than the rest of Europe had the Iberian caps not been applied.
August is now the most expensive month for electricity bills in history, particularly those that are tied to the regulated rate. Due to Russian pressure and the need for European countries to have sufficient reserves, the average cost of electricity generation has risen to more than 300 euros per megawatt hour.
Sanchez pointed out that Spain’s LPG regasification plant is responsible for Spain’s better gas supply than any other European country.
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