Spanish government cuts gas tax from 21% to 5% due to energy crisis

The President of the Government of Spain, Pedro Sánchez, announced this Thursday (1st) that the country will reduce the value-added tax (VAT) on gas in the country from 21% to 5%, targeting the energy crisis. that plagues Europe.

In an interview with SER chainthe leader stated that the measure will be taken in line with the policy that the government has been adopting in the current scenario.

According to him, the reduction will benefit the “working middle class while making an equitable distribution”, as the government is also planning to increase taxes on large energy companies, which benefit from the current scenario, he said.

The VAT reduction will be applied from October and will last until the end of the year, targeting winter in the Northern Hemisphere.

Meanwhile, Sánchez seeks to increase the country’s gas supply.

This week, the president visited the Federal Chancellor of Germany, Olaf Sholz, when they both discussed the construction of a gas pipeline that passes through Central Europe and connects the two countries.

So far, France has shown reticence with the proposal, but the Paris government has indicated that it will be able to evaluate the work.

Russia on Wednesday began a three-day suspension of gas flows to Europe through the Nord Stream 1 pipeline.

Russian state-owned Gazprom attributes the interruption to maintenance work, but there are suspicions that Moscow is retaliating against the Europeans for the sanctions it suffered after the invasion of Ukraine.