Miguel Ángel Alfonso
Wednesday, 22 June 2022, 10:47
Spanish prime minister Pedro Sánchez announced this morning (Wednesday 22 June) that the rate of IVA, Spain's value added tax, on electricity bills is to be reduced from the present 10% to 5%. The measure is due to be approved by the Cabinet at a special meeting on Saturday.
This would save approximately six euros on an average household bill, based on the current price of electricity, which is 155 euros per megawatt hour. It will also make Spain one of the EU countries with the lowest rate of tax on electricity bills, along with Malta (5%) and Greece (6%).
Sánchez attributed the rising cost of living in recent months to the war in Ukraine. The government already put some measures into effect to try to reduce the financial pressure on families and businesses, he pointed out, and said they will continue to do so.
Hace un año rebajamos el IVA de la luz del 21 al 10%. En el próximo #CMin lo reduciremos del 10 al 5% para seguir protegiendo a la ciudadanía de los efectos de la guerra. Esperamos que todos los grupos apoyen la medida en beneficio de las familias, empresas e industrias del país. pic.twitter.com/rZqPAAASkaPedro Sánchez (@sanchezcastejon) June 22, 2022
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