Cutting VAT on electricity, gas, water and public transport

Automatic summary, not yet reviewed

1. The bill would cut VAT on household electricity and natural gas, and on butane gas cylinders weighing between 8 and 20 kilos, moving them from the general rate to the reduced rate.
2. Water fit for human or animal consumption, or for irrigation, would go from 10% to 4% VAT.
3. Passenger transport, including luggage, would also move to the reduced 4% rate.
4. The bill is justified by rising bills and energy poverty, and notes that European Union rules allow reduced VAT rates for these basic services.

Who it affects

• Families that use little electricity or gas at home: would pay less VAT on those bills
• Households that use butane gas cylinders: would pay less VAT on the cylinder
• Users of water for drinking, animal consumption or irrigation: would pay less VAT on their water supply
• Public transport passengers: tickets would carry less VAT

Words worth knowing

IVA

Value Added Tax (VAT): a percentage added to the price of almost everything you buy, paid with every bill.

Tipo reducido

Reduced rate: a lower VAT percentage applied to products considered basic.

Pobreza energética

Energy poverty: when a household struggles to pay its electricity and heating bills.

Proposición de ley

A bill: a text introduced by members of Congress to become law. It is not an approved law yet.

It summarizes the text as it was introduced. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries