The Spanish government is reducing the value-added tax on natural gas to 5% from 21% from October in order to limit the impact of rising prices on household bills, Prime Minister Pedro Sanchez announced.
“So that citizens’ heating bills are lower,” Sanchez said in an interview with a local radio station, according to Reuters. He added that his government seeks to “fairly share the costs and charges of the war (in Ukraine)”.
It is recalled that the Spanish government reduced the VAT on electricity twice in the past year.
Spain has pledged with its European Union partners to reduce natural gas use by 7%, although so far this year consumption in the country has increased from last year.
The heatwaves caused a significant increase in electricity demand for cooling devices, while also leading to a reduction in hydropower production – an important source of energy in Spain – due to water shortages.
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