BREAKING: Hope for electric prices as Sanchez announces VAT lowered to 5%

SPAIN’S Pedro Sánchez announced on Wednesday, June 22 that Spain will lower the VAT on electricity from 10 per cent to 5 per cent.

The Spanish President said that the decree to lower the VAT rate for electricity in Spain will be approved at the Council of Ministers meeting on Saturday, June 25.

“A year ago we lowered the VAT on electricity from 21% to 10%. In the next #CMin we will reduce it from 10 to 5% to continue protecting citizens from the effects of war,” the President of the Spanish government said on Wednesday, June 22.

“We hope that all groups support the measure for the benefit of families, businesses and industries in the country.”

Hace un año rebajamos el IVA de la luz del 21 al 10%. En el próximo #CMin lo reduciremos del 10 al 5% para seguir protegiendo a la ciudadanía de los efectos de la guerra. Esperamos que todos los grupos apoyen la medida en beneficio de las familias, empresas e industrias del país. pic.twitter.com/rZqPAAASka

— Pedro Sánchez (@sanchezcastejon) June 22, 2022

Sánchez made the announcement in response to pressure from Esquerra’s spokesman, Gabriel Rufián, who implored the Prime Minister to act in the face of the growth of inflation that “could overwhelm the Government.”

The measure would mean a saving of six euros on average per household with the current price of electricity (155 euros MW/h.). In addition, it would place Spain as the country with the cheapest VAT on electricity in the European Union together with Malta (5 per cent) and Greece (6 per cent).

Rufián also pressed Pedro on the price of petrol, which rose 66 per cent last year (electricity rose 48 per cent) while Iberdrola earned 3,885 million in 2021.

“3,885 million to be distributed among them while people burn for terror to put the air conditioning,” Rufián stated.

Rufián said that a melon could cost 13 euros, a watermelon 12, and half a kilo of cherries six, prices that make it difficult for someone who earns 16,300 euros a year to buy.

“This can devastate you, us, any government and any left-wing initiative,” he warned, urging Sánchez to impose a “tax on large fortunes.”

Rufián also said that a “fair” system needs to be created that translates into a “real redistribution of wealth”. He specifically highlighted electricity and oil companies.

“Do what you promised you would do, because if you don’t, the cost of living will devastate you,” he said.

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