The government has extended many anti-crisis measures approved in 2022 to mitigate the economic effects of the war in Ukraine – but electricity and gas bills are set to go up in the new year.
The reduction in VAT (IVA) on basic food products will remain in place until June 30.
PM Pedro Sánchez explained on Wednesday that the rate for bread, flour, cheese, eggs fruit, vegetables and cereals will stay at 0% (down from 4%); while the VAT charged on olive oil and cooking oil and pasta will stay at 5% (down from 10%).
However, starting next month VAT on electricity bills will rise from 5% to 10%, which is still a far cry from the 21% charged before the war provoked by the Russian invasion.
Full report in Friday’s Costa Blanca News
