The Spanish government approved on Tuesday additional energy measures to enable domestic consumers and industry to cope with the consequences of the reduction of natural gas supplies from Russia to the European Union (EU).
These initiatives are added to those previously adopted to reduce the excessive profits of energy companies, to support the industry, to give relief to vulnerable consumers and to the so-called Iberian Mechanism.
The Third Vice-President of the Government and Minister for Ecological Transition and Demographic Challenge, Teresa Ribera, has highlighted that the VAT charged on natural gas bills will be temporarily reduced from 21% to 5%, which is the minimum allowed by EU law.
This tax reduction will be in force until 31 December and will also apply to the purchase of pellets, briquettes and firewood, the government reported in a statement.
The initiative comes on top of the progressively approved tax cut on electricity, which has also left VAT at 5%, set the electricity tax rate at 0.5% and suspended the 7% tax on generation, a measure that has brought savings of more than 10 billion euros to consumers, according to government data.
Teresa Ribera stated that depending on how events evolve, the tax reductions could be extended into next year.