Spain will reduce the value-added tax on fuel products from 21% to 10% as part of measures to cushion the economic blow from the Middle East conflict, SER radio station reported, citing sources familiar with the plans.<\/p>\n
Madrid also plans to suspend the excise duty on hydrocarbons, which would lead to an immediate reduction in the price of diesel and \u200cpetrol of between 0.30c \u2060and 0.40c per litre, the SER report added.<\/p>\n
The government will eliminate a 5% tax on electricity consumption, according to the report.<\/p>\n
A government spokesperson declined to comment ahead of the press conference announcing the measures, set for 11am local time (10am Irish time).<\/p>\n
European countries, which are heavily dependent on energy imports, are taking action \u200cto curb an expected rise in inflation. Financial markets expect eurozone inflation to climb nearly 4% over the next year, then take years \u2060to return to the European Central Bank’s 2% target.<\/p>\n
On Wednesday, Italy cut excise duties \u200con fuels by 25c per litre and Germany is mulling a support \u2060package including a windfall \u200ctax on oil companies.<\/p>\n
The reported measures could help prevent sharp rises in fuel prices from causing inflationary pressure on other goods but would primarily help private car owners, who tend to be wealthier, economist Antonio Gonzalez said.<\/p>\n
Ministers \u2060said earlier this week the full package will include aid for economic sectors most exposed to the \u2060crisis, but added that the country’s high generation of renewable energy meant its economy was less exposed to the impact of oil price spikes caused by the war.<\/p>\n
Spain’s electricity prices have been among the lowest in Europe this year due to abundant rains filling hydropower reserves, high electricity generation from wind and solar and nuclear power enabling it to rely less on gas than \u200cother countries.<\/p>\n","protected":false},"excerpt":{"rendered":"Spain will reduce the value-added tax on fuel products from 21% to 10% as part of measures to…\n","protected":false},"author":2,"featured_media":356116,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[42,43,40,38,41,39],"class_list":["post-356115","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-headlines","tag-news","tag-top-news","tag-top-stories","tag-topnews","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/356115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=356115"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/356115\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/356116"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=356115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=356115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=356115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}