The measure will take effect from October, according to Prime Minister Sanchez.
The Spanish government will reduce from October the VAT on natural gas to 5% from the current 21% in order to reduce the impact that rising gas prices are having on household utility bills, the country’s Prime Minister announced today Pedro Sanchez.
“To lower heating bills for citizens, the government seeks to fairly distribute the costs and charges caused by the war (in Ukraine).”said the social democrat Sanchez speaking to the radio station Cadena Ser.
The Spanish government has reduced VAT on electricity twice in the last year.
Energy costs have soared since Russia invaded Ukraine in February as Russia is a key supplier of natural gas to Europe for heating and power generation.
Spain has pledged to its European Union partners to reduce natural gas consumption by 7% in 2022, but gas use has increased by the end of the summer compared to the same period in 2021.
Heatwaves during the summer have caused an increase in demand for electricity due to the use of air conditioners, while hydropower production — an important source of energy for Spain — has decreased due to water shortages.
RES-EMP
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