VAT on electricity and gas back to 21% in Spain
Electricity and gas return to the 21% VAT rate after months of reductions. Energy costs rise for households even as inflation cools.
English · Original discussion in Spanish · Published
VAT on electricity and gas back to 21%: energy tax cut comes to an end
As of this Monday, VAT on electricity and natural gas has returned to the standard rate of 21%, after months at a reduced rate of 5% and later 10%. The measure, part of the Spanish government's social shield to limit the impact of the energy crisis, is being scrapped at a time when wholesale prices are more contained but still high for consumers.
The cost of the energy basket is rising again. For an average household, the increase means an extra 8 to 15 euros a month on the combined electricity and gas bill, according to calculations by OCU and other organisations. Consumer associations criticise the withdrawal as premature, while the government argues that prices have fallen enough and that it is time to normalise taxation.
The return to 21% comes just as headline inflation moderates, but energy continues to weigh on household budgets. The debate over the timing pits those who believe families need more relief against those pointing to the need for fiscal consolidation. With the geopolitical situation still uncertain, the decision to withdraw the energy shield is far from unanimous.
Related discussions in the forum
As of this Monday, VAT on electricity and natural gas has returned to the standard rate of 21%, after months at a reduced rate of 5% and later 10%. The measure, part of the Spanish government's social shield to limit the impact of the energy crisis, is being scrapped at a time when wholesale prices are more contained but still high for consumers.
The cost of the energy basket is rising again. For an average household, the increase means an extra 8 to 15 euros a month on the combined electricity and gas bill, according to calculations by OCU and other organisations. Consumer associations criticise the withdrawal as premature, while the government argues that prices have fallen enough and that it is time to normalise taxation.
The return to 21% comes just as headline inflation moderates, but energy continues to weigh on household budgets. The debate over the timing pits those who believe families need more relief against those pointing to the need for fiscal consolidation. With the geopolitical situation still uncertain, the decision to withdraw the energy shield is far from unanimous.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (17 replies).
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