Spain to invest €5bn to mitigate effects Middle East conflict, including reduction of fuel VAT
Government plans to temporarily stop special tax on electricity and reduce electricity generation tax
The Spanish government will invest €5 billion in measures to mitigate the effects of the conflict in the Middle East.
The anti-crisis measures were approved on Friday in an extraordinary meeting of the Council of Ministers.
Prime Minister Pedro Sánchez explained that the plan includes a "drastic" reduction in energy tax, with measures such as the reduction of VAT from 21% to 10% on fuels, electricity, and gas.
The executive has also extended the electricity social bonus until December 2026, and boosted the heat bonus too.
Sánchez also announced an 80% rebate on tolls to exposed industries, and direct aid of 20 cents per liter of fuel for the agricultural sector.
The reduction of VAT on gasoline will translate into €20 in savings per average car deposit.
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