Sunday. 02.10.2022
ENERGY CRISIS

Spain to lower VAT on gas from the current 21% to 5%

This reduction of VAT on gas is one of the measures recently proposed by the leader of the People's Party (PP), Alberto Núñez Feijóo, which was vehemently rejected only the day before by the PSOE ruling party
30/08/2022. Spanish prime minister Pedro Sanchez with the German federal chancellor Olaf Scholz during a recent meeting in Germany. Photo: La Moncloa/Flickr.
Spanish prime minister Pedro Sanchez with the German federal chancellor Olaf Scholz during a recent meeting in Germany. Photo: La Moncloa.

Spanish Prime Minister Pedro Sánchez announced on Thursday a reduction in VAT on gas from the current 21% to 5%.

In an interview with the radio station SER, Sanchez said that the measure would come into effect from October and would last until the end of the year. However, the government, he said, is open "to extending it to next year."

According to his explanation, the measure seeks to "lower the heating bill of Spanish families" and "always protect the working middle class now that we are going to enter autumn and winter."

This lowering of VAT on gas is one of the measures recently proposed by the leader of the People's Party (PP), Alberto Núñez Feijóo, which was vehemently rejected only the day before by the ruling PSOE.

VAT on electricity

The coalition government (PSOE-Podemos) already lowered the VAT on electricity from 10% to 5% last June. That was the second reduction of this tax in a year to face the energy price crisis.

Also in Germany, Federal Chancellor Olaf Scholz announced on August 18 that VAT on gas will be reduced from the current 19% to 7% between October and March 2024.

Spain to lower VAT on gas from the current 21% to 5%
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