Spain cuts natural gas sales tax to help people with costs

Spain will briefly slash gross sales tax on pure fuel from 21% to five% to assist shoppers face rising vitality prices this winter as Russia has in the reduction of fuel exports to Europe amid the warfare in Ukraine.

Teresa Ribera, Spain’s minister charged with vitality coverage, stated on Tuesday that the discount in gross sales tax will final till 31 December however may be prolonged past that date if wanted. It additionally will apply to the sale of firewood and biomass pellets.

She stated rising vitality costs that each one of Europe is enduring are instantly linked to the discount in fuel move from Russia because it tries to strain Europe into dropping its help for Ukraine. Pure fuel is used to warmth and funky properties, generate electrical energy and energy factories.

“These usually are not future threats, we’re proper now experiencing the results of the discount in fuel despatched by Russia to the European Union,” Ribera stated.

That is the most recent measure taken by Spain, which, like governments throughout Europe, is making an attempt to cushion the blow of rising prices on account of a scarcity of provide.

In June, Brussels allowed Spain and neighbouring Portugal to skirt European Union guidelines and subsidise shoppers’ fuel payments and put a cap on pure fuel costs.

Ribera stated these measures had saved Spanish shoppers some €10 billion in extreme vitality prices.