Spain cuts fuel VAT to 10 percent to reduce energy costs
Spain will cut fuel VAT to 10% and suspend hydrocarbon duties to lower prices. The move aims to cushion economic impacts from the ongoing Middle East conflict.
Xurve View
Xurve View
The government of Spain is set to implement a significant reduction in the value-added tax on fuel products, lowering the rate from 21% to 10%. This measure, reported by the SER radio station, is intended to mitigate the economic impact of the ongoing conflict involving Iran.
In addition to the VAT cut, Madrid is expected to suspend the excise duty on hydrocarbons. This move is anticipated to provide immediate relief at the pump, with prices for diesel and petrol projected to fall by between 0.30 euros and 0.40 euros ($0.35-$0.46) per litre.
