Tax measures to lower the electricity bill have subtracted 5,592 million from the collection

The Government calculates that the extension of these measures until the end of the year will have an impact of between 10,000 million and 12,000 million

MADRID, 31 Jul. (EUROPA PRESS) -

The tax measures approved by the Government to stop the rise in electricity and its impact on the electricity bill have caused a reduction of 5,592 million euros in collection since its implementation last year until the end of June.

This follows from the monthly tax collection report for the month of June and published this week by the Tax Agency, which includes the impact of the reduction in rates on electricity approved by the Government, which has been extended until the end of of year.

In the first half of the year alone, the tax measures to stop the rise in the price of electricity led to a reduction in income of 3,987 million, of which 1,812 million correspond to the reduction in tax rates and 2,175 million to the suspension of the Tax. on the Value of Electric Power Production.

Thus, the block of measures that continues to subtract more tax revenue are those approved to mitigate the effects of the significant increase in the price of electricity. In a single month - June compared to May - an additional loss of income of almost 300 million is estimated.

It should be remembered that at the end of June the Government approved the extension of the royal decree-law of measures to alleviate the economic consequences of the war in Ukraine due to the invasion of Russia, which includes the extension of fiscal measures to lower the electricity bill and incorporates an additional reduction in the VAT rate from the previously approved 10% to 5%.

The new reduction in VAT on electricity is produced under the same terms in which it was in force. In other words, it affects consumers with a contracted power of less than or equal to 10 kW, provided that the arithmetic average price of the wholesale electricity market corresponding to the month prior to the last day of the billing period has exceeded 45 euros per MWh.

According to the Executive, this VAT reduction allows to reduce the bill to 27.7 million households, freelancers and companies and also applies to 72.5% of electricity supply contracts for companies and businesses (non-domestic).

The 5% tax will also apply to severely vulnerable consumers and those at risk of exclusion, regardless of the power contracted or the price of electricity, a measure that will benefit more than 640,000 households.

Likewise, the Special Tax on Electricity, which the Government already lowered in September 2021 from a rate of 5.1% to 0.5%, will maintain this minimum tax allowed by European Union regulations until December 31, 2022.

The decree approved at the end of June also maintains the suspension throughout 2022 of the Electricity Production Value Tax (IVPEE), a tax that levies 7% on income obtained from the sale of electricity in the wholesale market and is reflected in the price of said market and in the final invoice.

According to the calculations of the Executive, the extension of these tax measures related to electricity throughout 2022 will cost the State between 10,000 million and 12,000 million euros.