Spain announced an emergency package worth €5bn ($5.7bn) to mitigate the fallout from the Iran war. Its prime minister, Pedro Sánchez, said the country would temporarily cut value-added tax on electricity and natural gas from 21% to 10%. Germany, which has already capped the price of petrol and diesel, is reportedly considering introducing windfall taxes on energy companies.
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>The plan includes reducing VAT on electricity and gas from 21% to 10%, lowering the special electricity tax from 5% to 0.5%, and suspending the tax on electricity production, currently set at 7%, Prime Minister Pedro Sánchez said Friday in Madrid.
Why must Spain have so many taxes on electricity? It has relatively cheap electricity, and yet it’s pushing people to use gas instead…
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Spain announced an emergency package worth €5bn ($5.7bn) to mitigate the fallout from the Iran war. Its prime minister, Pedro Sánchez, said the country would temporarily cut value-added tax on electricity and natural gas from 21% to 10%. Germany, which has already capped the price of petrol and diesel, is reportedly considering introducing windfall taxes on energy companies.
>The plan includes reducing VAT on electricity and gas from 21% to 10%, lowering the special electricity tax from 5% to 0.5%, and suspending the tax on electricity production, currently set at 7%, Prime Minister Pedro Sánchez said Friday in Madrid.
Why must Spain have so many taxes on electricity? It has relatively cheap electricity, and yet it’s pushing people to use gas instead…