Spain will briefly slash gross sales tax on pure fuel from 21% to five% to assist shoppers face rising power prices this winter as Russia has reduce fuel exports to Europe amid the conflict in Ukraine.
Teresa Ribera, Spain’s minister charged with power coverage, mentioned on Tuesday that the discount in gross sales tax will final till 31 December however could be prolonged past that date if wanted. It additionally will apply to the sale of firewood and biomass pellets.
She mentioned rising power costs that every one of Europe is enduring are immediately linked to the discount in fuel movement from Russia because it tries to strain Europe into dropping its help for Ukraine. Pure fuel is used to warmth and funky houses, generate electrical energy and energy factories.
“These are usually not future threats, we’re proper now experiencing the implications of the discount in fuel despatched by Russia to the European Union,” Ribera mentioned.
That is the newest measure taken by Spain, which, like governments throughout Europe, is attempting to cushion the blow of rising prices resulting from 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 mentioned these measures had saved Spanish shoppers some €10 billion in extreme power prices.