The President of the Government, Pedro Sánchez, will detail this Friday at 11:00 hours in an extraordinary Council of Ministers the package of measures designed by the Executive to face the economic consequences derived from the war with Iran, in a context of strong tension in the international energy markets. Subsequently, the package will be sent to Congress for its validation, with a vote scheduled for next Thursday, March 26.
Among the main initiatives, those aimed at containing the cost of energy stand out. The Executive proposes a VAT reduction on fuels from 21% to 10%, along with a reduction in the special tax on hydrocarbons. Likewise, a reduction in the VAT on electricity and gas from 21% to 10% is contemplated, in addition to the suspension of the tax on the value of electricity production.
The Government emphasizes that the objective is “to protect middle and working classes” and “to cushion the impact of an international crisis that directly affects citizens' pockets”. In this regard, the Executive insists that these are temporary measures, designed to respond to an exceptional situation marked by geopolitical instability.
The announcement of the plan by Sánchez will take place after several days of internal work within the Government and contacts with different economic sectors. The intention is to offer a quick response that limits the effects of the rising cost of fuels and energy on the Spanish economy.
