VAT reduction on butane gas cylinders rejected by Spanish Government

Image of a lorry delivering butane gas cylinders. Credit: IMAGEN PUNTO DE LUZ/Shutterstock.com

The Spanish Government rejected a reduction of VAT from 21 per cent to 5 per cent on butane gas cylinders.

 

The price of a cylinder of butane gas in Spain will not drop in the near future. A reduction in VAT on butane and propane gas cylinders from 21 to 5 per cent was today, Tuesday, November 1, rejected by the Government. 

It had been hoped that a reduction would be applied, in accordance with the recently approved reduction for gas. The Government said it trusted that the ceiling price set in a recent decree law would be sufficient to avoid any uncontrolled rises.

In a response registered in Congress, the Executive explained that a European directive insists that member states may apply a maximum of two reduced rates of not less than 5 per cent. This will subsequently apply only to deliveries of goods and to the provision of expressly related services.

“Among these categories, liquefied petroleum gases are not included among the categories of goods to which a reduced rate of tax can be applied”, argued the Government. For this reason: “a reduction in the rate of VAT on butane and propane gas cylinders is not possible”.

However, in its response, the Government recalled that through the measures deployed to respond to the economic and social consequences of the war in Ukraine, a limitation had been established on the maximum sale price, before taxes, of bottled liquefied petroleum gases.

Specifically, the maximum price of the 12.5km butane cylinder was set at €19.55 euros, by the application of Royal Decree Law 11/2022, as reported by lasprovincias.es.

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Written by

Chris King

Originally from Wales, Chris spent years on the Costa del Sol before moving to the Algarve where he is a web reporter for The Euro Weekly News covering international and Spanish national news. Got a news story you want to share? Then get in touch at [email protected]

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