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Spain to Cut VAT on Gas Bills to Ease Inflation Impact

  • Move is latest in slew of measures to ease power costs
  • Lower VAT to start in October, last until end of 2022
Updated on

The Spanish government will cut the value-added tax on natural gas to 5% from 21%, in the latest step to blunt the impact on households and businesses of inflation running at its highest level in nearly four decades.

The cut will start in October and last until the end of the year, Sanchez said in an interview with Spanish radio station Cadena Ser Thursday. “This will lower the heating bill of our citizens given the surge in prices,” Sanchez said. He didn’t say how much the move will cost his government in lost revenue.