Sánchez reacts to the Andalusian fiasco by lowering VAT on electricity in Spain

Sánchez reacts to the Andalusian fiasco by lowering VAT on electricity as requested by the PP in Spain, but Podemos is suspicious and insists on a tax on electricity companies

Despite this agreement in the substance of the matter, for the moment the details of the measure have not been specified – key, among other things, to determine its collection capacity – because the Socialists insist that the tax increase to the electricity companies must be launched by the beginning of 2023.

The proposal of Unidas Podemos, on the contrary, is to approve the increase in the tax pressure on electricity companies through a decree, something legally possible because it would be a modification in corporate tax and not the creation of a new tax.

Sources familiar with the content of the negotiations explain that an intermediate option that has been put on the table would be to approve the new tax rate through a law processed by the urgency procedure.

This method would be faster than following the ordinary legislative procedure, but it would imply that the tax could not be implemented, at least, for three or four months, compared to the immediacy offered by the option of approving it by decree.

The first response of the PSOE to the blow of the left in the Andalusian elections last Sunday was announced on Wednesday by the President of the Government, Pedro Sánchez: a reduction from 10% to 5% of vat on the electricity bill. It is a measure designed, said Sanchez, to lower the electricity bill, but the truth is that, by adopting it, the Executive gives a blow to what it defended just a few days ago, when it rejected that same tax reduction as “cosmetic” and “insufficient” in the medium and long term.

The change of idea of Sánchez supposes, in fact, to assume one of the star measures proposed by the PP to stop the rise in prices, and this was celebrated by the popular, who however this Wednesday also snapped at the president that the measure “arrives late and forced” by the electoral “varapalo” of Andalusia.