The Council of Ministers will approve it on Tuesday, December 27. third aid package It will take effect on January 1 to alleviate the economic and social consequences of the war in Ukraine and will include measures to deal with the rise in food prices.
After the last Cabinet meeting in 2022, Prime Minister Pedro Sánchez is scheduled to appear before the press himself. Explains the package of measures against the crisis and an assessment of the scale of prices at historical levels after the outbreak of the conflict and a year marked by the war in Ukraine initiated by Vladimir Putin.
Although Spain has managed to soften the rise in prices in recent months and is already the country with the lowest inflation in the eurozone, the Administration has decided to promote a third support package for Spain. deal with the current situation It will include the extension of some of the measures already in force and ending on 31 December, and other new measures predominantly related to the shopping cart.
In addition, Pedro Sánchez announced a few days ago that this new package of measures also gas-intensive and ceramic industry.
VAT discount and 300 Euro check
One of the most powerful new initiatives to be included in the decree law that will be approved by the Council of Ministers next Tuesday, was the VAT reduction on some products in the shopping cart in order to reduce the impact of the increase. inflation.
Sources familiar with the negotiations explained to Europa Press that all possibilities are open, but that, apparently, the one with the most options for success is VAT reductions on certain foods. 10% taxation, including fish, and this can drop to 4%.
VAT on food in Spain ranges from . discount rate (10%) and super discount rate (4%). Food products are considered products that can be used as food for humans or animals.
All these products, except those considered food, are subject to 10% VAT. first need Such as milk, eggs, fruit and vegetables, bread or legumes, which are taxed at the super-discounted rate of 4% and cannot benefit from a lower rate, they cannot benefit from a lower rate unless the Government decides to remove VAT for these products.
However, there are some foods that do not fit into any of these categories, such as: sugary or alcoholic beverages A general VAT rate of 21% applies.
In addition to the VAT reduction, Ione Belarra, the leader of Podemos, announced a few days ago that as part of the extension of his area’s anti-crisis measures decree, he has negotiated a relief check of around 300 euros with the PSOE to alleviate the crisis. the cost of the shopping cart, which will benefit approximately eight million people.
Extension of the measures
While the executive has not considered almost any extension measures in the 2023 General State Budget (PGE) to respond to the consequences of the war in Ukraine, Ministry of Finance sources assume they will need to be extended. “adequate precautions” currently in effect.
The only exception included in the public accounts for the next year is the free ticket. Cercanías and the Middle Distance for frequent travellers, it will reach around 660 euros during the year.
Among the measures approved to be extended, the 2% limit for updating rental income and 15% increase Following the government’s agreement with EH Bildu to receive support from the General Government Budget (PGE) for 2023, non-contributory pensions
In financial matters, the Government has promoted a series of measures aimed at limiting price increases in the electricity bill. It is noteworthy that VAT on electricity bills applied to consumers, companies or individuals has been reduced from 10% to 5%. Contracted power up to 10 kilowattsImplementing a tax of 0.5% of SCT on electricity and extending the temporary suspension of the Tax on electricity production value.
All these tax cuts, aimed at easing electricity price increases between January and October, amounted to a 6,436 million decrease in tax revenue compared to last year, according to the latest data updated by the Tax Office in its monthly collection report.
In the second package of measures approved in June, a temporary 15% increase in the Government’s Minimum Vital Income, a ban on the suspension of electricity, gas and water supply, direct assistance of 200 euros For wage earners, self-employed and the unemployed registered with employment agencies living in households with an income of less than 14,000 euros, freezing the maximum price of butane cylinders to 19.55 euros until the end of the year.
What about fuel discount?
One of the most questioned measures is the extension of the 20 cents bonus per liter of fuel. While the government hasn’t made it clear exactly what will happen with this reduction, First Vice President and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, acknowledged that it was a controversial measure due to its financial impact. not the most vulnerable classes with cars.
Also, Calviño stated that this reduction is a precaution.”very questioned” because it does not encourage savings in fuel consumption, and compared it to a discount on public transport – the Cercanías and Media Distancia trains for repeat passengers – which he describes as a “star” vehicle and will therefore be extended throughout. year 2023
Therefore, the Government’s economic manager has opened the door.focus on sectors most affected“What we’re seeing is whether this bonus can be eliminated for everyone and only kept in essential sectors,” he said.