Spain slashes fuel and energy taxes in €5 billion plan to curb Iran war impact

The Spanish cabinet approved on Friday the legal measures to alleviate the economic impact of the war in the Middle East.

During his speech at the Moncloa palace, just three weeks after Israel and the US started bombing Iran, PM Pedro Sánchez said that Spain is better prepared now than at the start of the war in Ukraine in 2022.

The plan costs five billion euros and includes 80 lines of actions, among them the reduction of IVA tax on fuels, electricity and gas to ten per cent.

The main objective is to contain the rise in energy prices and, subsequently, the general rise in prices that would follow.

The cabinet approved two royal decrees during the meeting on Friday: the economic package to curb the impact of the war and one that regulates housing.