The European Commission (EC) has warned Spain that the reduction of VAT on fossil fuels to 10%, as recently announced by Pedro Sánchez’s government to ease the burden on families facing rising fuel prices due to the war in the Middle East, violates European rules, advances the The Country.
Brussels even sent a letter warning the Spanish executive at the end of March, stating that “the European Union directive on VAT does not allow the possibility of applying a reduced rate on fuel supplies”.
The Spanish government, in turn, defends the approved fiscal relief, one of the main measures of the anti-crisis decree, arguing that it is temporary due to the crisis in the Middle East.
Poland was also warned by the European Commission.
In Portugal, the Government led by Luís Montenegro continues to make tax discounts on the Tax on Petroleum Products. In this sense, he requested the Assembly of the Republic to, temporarily, authorize the Government to lower the ISP rate beyond the minimum limits established by law, but still above the limits imposed by the EC.
Leave a Reply