Spain is set to implement significant tax cuts on fuel products as a strategic maneuver to soften the economic impact of the ongoing Middle East conflict. As revealed by SER radio sources, the value-added tax on these products will be reduced from 21% to 10%.
In tandem with this VAT reduction, Madrid aims to suspend the excise duty on hydrocarbons. This decision is anticipated to result in an immediate decrease in diesel and petrol prices by approximately 0.30 euros to 0.40 euros per litre.
The dual approach of lowering VAT and excise duties underscores Spain’s proactive efforts to shield its economy from external geopolitical shocks, providing relief to consumers and businesses alike.
(With inputs from agencies.)