The Government plans to bring to the Council of Ministers this Thursday the reduction of the VAT on electricity to 10%, compared to the current 21%, according to Cadena SER has advanced and sources from the Executive confirm to this newspaper. The idea is that it is a temporary measure, that it is extended during the current period of rising costs of the invoice that, according to various experts, will be extended at least this year.
The measure has been discussed and approved this Monday in the General Commission of Secretaries of State and Undersecretaries to take it to the Council of Ministers on Thursday. But it is not closed. Details as relevant as how much power it affects remain to be discussed, since there are different opinions in the Government.
The economic vice president, Nadia Calviño, confirmed this Monday that the Government is studying “different measures” to “alleviate” the rising cost of electricity generation on the electricity rate. During his speech at a seminar in Santander, Calviño pointed out that the Executive foresees “structural” reforms in the electricity system but also others “of a temporary nature”, in line with those approved on another occasion due to “very intense increases” in price . “We are a very sensitive Government and aware of the need to protect the consumer and also companies, SMEs and the self-employed,” said the second vice president of the Government.
United We can sources confirmed to the Efe agency that the reduction of VAT on electricity from the general rate (21%) to the reduced rate (10%) will be addressed in the extraordinary Council of Ministers scheduled for Thursday. The Minister for the Ecological Transition, Teresa Ribera, already opened the possibility last week to a reduction in electricity taxes “on an exceptional and provisional basis” to stop the rise in the price of electricity.
The leaders of Unidos Podemos had been very insistent in recent weeks on the need to reach an agreement to lower the electricity bill. The formation that is now headed by Ione Belarra had been characterized in the past by harshly criticizing the increases in electricity prices that occurred during the PP government headed by Mariano Rajoy. The official VAT reduction proposal comes from the Department of the Treasury headed by María Jesús Montero.