Over the past year, the gas industry has been seeking reductions in taxes on the gas bill to cushion the blow of rising prices in international markets, which reached their peak during the energy crisis. Companies in the gas industry are celebrating President Pedro Sánchez’s announcement that from October the VAT on gas revenues will be cut from at least 21% to 5% by the end of the year, but they see this as only a first step and are calling for a cut. other taxes on your invoice.
Collaborations that bring together the entire gas industry (transport and distribution network groups, as well as marketers) and large industrial consumers,discrimination of gas customers against electricity consumers, many of the taxes included in the electricity bill (VAT, production tax and special energy tax =
“The industry is pleased that the Government is finally considering our claim to lower VAT. There was no point in not receiving symmetrical and fair treatment with regard to other energy consumption. Now they say the Government should go one step further and lower the “Special Tax on Hydrocarbons” on the gas bill. employer SedigasBringing together large companies from the entire value chain of the gas industry (transport, distribution, marketing and industry-specific suppliers of products and services) .
Hydrocarbon Tax
Gas companies are demanding tax cuts. Special Tax on Hydrocarbons (IEH) At the minimum Hydrocarbon Tax allowed by the European Union, a rate of EUR 0.65 per gigajoule (equivalent to EUR 2.34 per equivalent megawatt hour) applies to local customers and most industrial customers. European regulations set a minimum of 0.30 euros per gigajoule (1.08 euros per megawatt hour) for all member states.
The government has the authority to reduce the tax rate to the specified minimum without seeking permission from Brussels, but special approval is required if Spain tries to reduce the tax below this limit. As Sedigás underlined, the European Commission has been encouraging member states for months to take financial measures to mitigate the effects of this on the most vulnerable consumers.
The gas industry sees the impact of the rise in electricity prices on the electricity bills of all customers as unfair and discriminatory for the government to take direct measures through taxes, precisely as a result of the rise in prices. natural gas. The manager had already applied to further reduce the VAT of the electricity bill from 21% to 10%, then to 5%, in June of last year; also suspended the 7% tax on electricity generation; and reduced the special tax on electricity to the minimum allowed by Brussels, from 5.1% to 0.5%.
increment limit
What the government has done is to set a cap on the increases that can be applied to regulated gas rates (known as the rate of last resort, TUR). A measure only for regulated rate customers, not for those in the free market. The rate price, which is reviewed quarterly, cannot exceed 5%, although the very strong increase in gas prices in the wholesale markets implies much higher increases.
It is a temporary measure and does not prevent interest rate increases, only postpones them. And in the last two quarters, the Government has begun to affect previously unused increases on a deferred basis. A delayed increase was delayed to pay off the over 200m euros accumulated in major energy companies for increases that were not implemented in previous quarters.
Source: Informacion
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