THE Spanish government will reduce from October the VAT on natural gas to 5% from 21% located today, in order to reduce the impact that rising gas prices have on bills utility services for households, as announced today by the country’s prime minister Pedro Sanchez.
“In order to lower heating bills for citizens, the government seeks to fairly distribute the costs and charges it causes the war (in Ukraine)” said the social democrat Sanchez speaking to the radio station Cadena Ser.
The Spanish government, as noted by APE-MPE, has reduced VAT on electricity twice in the last year.
Energy costs have skyrocketed since February Russia invaded Ukraine as Russia is a key supplier of natural gas to Europe for heating and electricity generation.
Spain has pledged to its European Union partners to reduce natural gas consumption by 7% in 2022, but gas use has increased by the end of the summer compared to the same period in 2021.
The heatwaves experienced during the summer have caused an increase in demand for electricity due to the use of air conditioners, while at the same time the production of hydroelectric power – an important img of energy for Spain – has decreased due to water scarcity.
Source: News Beast
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