MADRID, Sep 20 – PRIME. Spain’s Council of Ministers approved a reduction in VAT on natural gas from 21 percent to five percent, according to the website of the Kingdom’s Ministry of Ecological Transition and Demographic Affairs.
As noted, this decision was made against the backdrop of high inflation, which, according to the National Institute of Statistics, accelerated in July to 10.7 percent. According to this indicator, Spain is ahead of such countries as France, Italy and Germany.
It is expected that the measure will last until the end of this year and will save 210 million euros.
Western countries have imposed unprecedented sanctions against Russia in connection with a special operation in Ukraine. Some of the measures also affect the energy sector. This led to the aggravation of the energy crisis in Europe, the region was faced with a shortage of fuel and rising prices for it.
Last week, the European Commission published recommendations for overcoming the energy crisis. Thus, the agency proposes to reduce the demand for electricity during peak hours by at least five percent and withdraw excess profits from energy companies. At the same time, there is no talk of limiting prices for Russian gas in the release.
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