Whaaattt?

When did Spain actually last have a budget, as far I understand it the last time Spain held a comprehensive state budget was back in 2023.
They have been giving VAT reductions since Russia invaded the Ukraine but the VAT rates on domestic electricity is one of the highest in the EU at 21% which was reduced and then raised back again to 21% on the 1st Jan 2025. They also don't have zero rated food items, with basic food like bread, milk, veg etc etc incur a 4% VAT rate, so it's a double whammy when basic food items and domestic energy increase.

By reducing the VAT, does help their citizens, but lets not forget virtually all the EU has zero rated VAT on basic food items with only a few charging VAT.

With the reduction in VAT, then it's instant on your weekly shop, refuelling at the pump and on domestic energy. The UK and other EU nations already has zero rated on basic food items in place and lower VAT rates on domestic energy, with the UK @ 5%, so not really much movement there in lower the VAT rate.

If Spain is lowering the VAT fate from 21% to 10% on fuel, then there must be a reduction in excise duty for there to be anywhere near a 30 cent a litre saving. For the UK to get a 30cent saving which is about 24p then the VAT rate would need to be zero. I filled up last night at 144.9 a litre, so VAT content was 24p @ 20%. If the UK lowered VAT to 10% then they would need to reduce the fuel duty by 12p per litre to get that saving that Spain is contemplating.

Spain does allow commercial operators to claim back a small percentage on the excise duty for road fuel, which is where I think the 30 cent saving will come from. It's diesel prices that have shot up in price compared to petrol, so I don't think the 30 cent saving a litre will apply to all general motorists.

 

@gks - it's not a budget, it's emergency measures! The list I have includes reduction on fuel taxes as well as the VAT. There's more I didn't list -
https://www.euronews.com/my-europe/...its-energy-costs-will-other-eu-members-follow

 

At what age do you become "geriatric" as opposed to just "old" ? I understood geriatric meant a person who required care due to their age but was not necessarily mentally unfit. Senility is different.
Interestingly enough, Putin never seems to age according to the pics you see of him whilst other world leaders do. Perhaps he really is Satan after all tho there are certainly a few other contenders for that title.

 

I know it's not a budget, but because it's a coalition party very few legislations have passed.
You have provided a link and it clearly states in the link, (The standard 21% VAT on fuel, electricity, and natural gas will go down to just 10%. For drivers, that cut is expected to knock about 30 cents off a litre of petrol)

So if it is is going to knock off 30 cents a litre by reducing the VAT rate from 21% to 10% as by your link, then they must of previously been paying 60 cents a litre in VAT, that would mean petrol is around the €3.60 per litre mark at the pump, which relates to £2.60 per litre.

My point is, there is nothing in your link to suggest a cut in fuel duty for petrol or diesel, but there is going to be fuel subsidies for farmers and fisherman. So either the Spanish are paying a high price for petrol a litre to get a saving of 30 cents by reducing the VAT rate to 10% or the government are planning to reduce the fuel duty as well, but there is nothing to suggest this.

 

Meta found guilty of negligence. Well, well! Of course, their top lawyers will be looking at ways to wiggle out of it but, hopefully, the verdict will stand. One small step for a jury, one giant leap for childhood!