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ARCHIVED - Spanish government announces temporary VAT reduction on electricity bills
Spain is notorious for its high electricity bills, partly due to the taxes applied that are much higher than in many other European countries.
Homeowners who have been worrying about their next electricity bills can breathe a slight sigh of relief as the Spanish government has agreed to reduce the IVA (VAT) tax on electricity bills from 21 per cent to 10 per cent, at least until the end of this year.
The measure, which will apply to consumers on the free market system, is set to be approved at an extraordinary Cabinet meeting this Thursday, 24 June, the government announced, but will be dependent on average monthly electricity prices remaining above 45 euros per megawatt/hour.
Political party Unidos Podemos had been clamouring for the move since electricity prices began to soar following the introduction on 1 June of the new energy price time bands, and has applauded the announcement but insists that it should be a permanent change. Electricity, the opposition party sustains, is a basic need and should not be taxed as a luxury.
While the change will mean the average Spanish family who can expect a bill of around 87 euros will see it drop to just under 80, the measure will see the Treasury coffers losing out on some 3 billion euros.
If you are interested in comparing electric prices with an alternative supplier, see the publicity below for Energy Nordic, who offer sustainable energy supplies and are generally able to save money for all their clients.
If you are considering the installation of solar power or the purchase of an electric vehicle and would like a quote for a domestic or business electric vehicle charging point, see Grupo Sía, covering Alicante province and the Murcia region.