VAT tax on fuels will reportedly drop from 21% to 10%, as Ursula von der Leyen suggests EU may move to help states with rising energy costs
Spain is set to put forward a number of emergency tax cuts this morning to counter the economic impact of the Iran war.
The measures – set to be presented at a press conference 11am local time – are expected to include lowering VAT tax on fuels to 10% from 21%, according to early media reports, alongside other changes, including to the hydrocarbon and electricity duties, intended to help with growing energy prices.
Reuters says that change to the hydrocarbon levy itself alone is likely to lead to an immediate reduction in the price of diesel and petrol between 0.30 and 0.40 euros.
Spain’s prime minister, Pedro Sánchez, has been a leading European voice critical of US and Israeli strike in Iran, repeatedly sounding alarm about its likely economic impact on Europe.
