Spain Cuts Gas Tax

According to the Ministry of Environmental Transition and Demography’s website, Spain’s Council of Ministers agreed a reduction in the VAT on natural gas from 21% to 5%.

As previously said, the choice was made in the midst of strong inflation, which, as the national institute of statistics reports, accelerated in July to 10.7 percent. In this respect, Spain is in front of nations like France, Italy, and Germany.

The program is anticipated to save €210 million and last until the end of this year.

In connection with the military action in Ukraine, Western nations have sanctioned Russia in a way that has never been done before. Some of the policies also have an impact on the energy industry. Europe now faces gasoline shortages and rising fuel prices as a result of the worsening energy crisis.

The European Commission released recommendations last week to address the energy problem. The organization advises taking surplus earnings from energy firms and lowering the demand for electricity during peak hours by at least 5%.

source: reuters.com

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