- On Tuesday the Spanish Government approved the decree that will enter into force in the first half of 2023 to reduce the effects of inflation. It is agreed to maintain some previous measures, such as the sale of public transport. Innovations include the elimination of VAT on 4% of basic foodstuffs and the limitation of increased rents.
The Spanish Government has adopted measures to mitigate the effects of inflation in the first half of 2023, by means of a third decree that has designated it. Most measures are extensions to existing or additional measures. However, the Decree will eliminate the 20 cents per litre of fuel allowances, in force from March until the end of the year, applicable only to professionals such as transporters and workers in the primary sector.
Other measures include rents, VAT on food, public transport prices and household energy bills. In the case of rentals, the decree includes the proposal of EH Bildu in the November budget negotiations: the current rentals will not be updated at a price above 2%. In addition, if you want to renew contracts that will be suspended in the first six months of 2023, the tenant is entitled to rent them on the same terms for another six months. Berria has noted that in recent months rentals have increased by 20%.
VAT on food at lower prices
On the other hand, between 1 January and June, in order to reduce the increase in the cost of the shopping cart, VAT will not apply to the most basic foods, which until now were 4%. These products include eggs, vegetables, fruits, legumes, bread, cheese and dairy products, among others. Oil and pasta will also be reduced from 10% to 5%.
The decree announces checks of 200 euros for families with annual income below 27,000 euros
The Spanish Government has agreed to grant a cheque of EUR 200 to families with incomes of less than EUR 27,000 per year, provided that they do not have assets of more than EUR 75,000. Planned aid amounts to 4.1 million households.
Maintain some pre-existing measures
As far as discounts on public transport are concerned, local and mid-distance tickets will remain free of charge throughout the next year, as well as 50% discounts on the transport of Hego Euskal Herria, such as the bus and metro.
The reduction in VAT on electricity bills will also be maintained for contracts up to 10 kilowatt power. Last year the tax was 21% and 5% since the end of June.