The Government will reduce VAT on gas from 21% to 5%

The Government will reduce VAT on gas from 21% to 5%

The Government will lower VAT on gas from the current 21% to 5% starting in October. This has been announced by Pedro Sánchez in an interview on Cadena SER in which he has assured that it is a "reasonable" measure given that winter is coming and that it will be in force until December 31, although he has already anticipated that it may be extended. further depending on the evolution of the situation due to the war in Ukraine.

"We are in a context of high uncertainty derived from the war, but without entering into euphoria we cannot fall into catastrophism," said the president, who has assured that the Government will continue to take measures to "protect the middle and working class ” which he considers to have become “vulnerable” due to the attack by Vladimir Putin. The socialist has argued that Spain's economic data is good and has referred to tourism, fiscal consolidation or job creation: "The duty of politics is to transfer certainty, it is not to gild the pill, but neither is it to enter a path catastrophic”.

The decision that the president has advanced by resuming the course is in line with the tax reduction measures that the Government has been taking to lower the electricity bill and has taken the opportunity to defend the Iberian exceptionality that the EU authorized to put a cap on the price of the gas with which electricity is produced in Spain and Portugal. Thus, he has ensured that if it were not for this mechanism, the price of electricity would be more exorbitant, as is the case in other European countries.


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