The Spanish parliament today ratified the measures approved last week by the Government to respond to the impact of the war in the Middle East.
The measures include reducing the ICMS on fuels, electricity and natural gas from 21% to 10%.
The Comprehensive Response Plan for the crisis in the Middle East, with 80 measures and which the Spanish Government estimates will mobilize five billion euros of resources, had the ‘green light’ from parliament with 175 votes in favor, 33 against and 141 abstentions.
The votes against were from Vox, far-right, and the abstentions were from Podemos (far-left) and the largest opposition party, the Popular Party (PP, right).
The PP considered that the measures are insufficient and should include a review of the income tax tables (equivalent to the IRS in Portugal), to benefit a wider range of consumers, especially because of the predictable impacts on the prices of food and other goods.
For the PP, lowering fuel taxes “does not at all alleviate the situation of people who do not use a car”.
The Minister of Economy, Carlos Cuerpo, argued that the “most visible effect” for now of the war in the Middle East is the increase in fuel prices, along with impacts on some raw materials, such as fertilizers, and that the measures the government has put forward resulted from consultations with representatives from different sectors of the economy.
The Comprehensive Response Plan for the crisis in the Middle East approved on March 19 by the Spanish Government came into force the following day, but had to be validated within a month by parliament to be maintained.
In addition to measures “more of a cyclical nature”, mainly related to a “drastic reduction of all energy taxes”, the plan includes others “of a more structural nature”, to continue to encourage investments by individuals and companies in the decarbonization and electrification of the economy, in line with what the current Spanish Government has done in the last seven years, said the Socialist Prime Minister, Pedro Sánchez, last week.
The cyclical measures, in immediate response to the impact of the war on energy prices, include, in addition to the reduction in Value Added Tax (VAT) on electricity, fuels and natural gas, the reduction or suspension of other taxes, such as the special tax on hydrocarbons and others on the production and consumption of electrical energy.
The package of measures also includes discounts and aid on diesel for transport companies and the agricultural and fishing sector, as well as support for the purchase of fertilizers for agriculture.
In parallel, the executive will reinforce support for the payment of electricity for families considered vulnerable and a maximum price will also be established for butane and propane gas.
In the case of electricity, there is a 60% global drop in taxes and, on fuels, VAT rises to the minimum value allowed by the EU.
As for structural measures to deepen the electrification and decarbonization of the Spanish economy and energy consumption in the country, with a view to “energy sovereignty”, they include tax deductions in the case of installing solar panels, heat pumps or electrical recharge points, as well as other incentives and aid for energy improvements in buildings, the purchase of electric cars or the increase in electrical storage capacities with batteries, among others.
It is about responding to the “immediate consequences” of the war and “preparing for future energy shocks”, summarized the Minister of Economy, in the debate in parliament.
Last week, the government approved a diploma to freeze household rents, also in the context of the impacts of the war in the Middle East on prices and living standards, but to this end it has so far been unable to secure sufficient support in parliament and the document has not yet been submitted to a vote by deputies.
The measures now ratified remain in force until June, but the Spanish Government stated that they could be prolonged and expanded “if the severity of the crisis increases”.
Lusa
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