June 25 () –
The Council of Ministers will predictably resolve this week whether and under what conditions the anti-crisis aid that will expire on June 30, such as the reduction in VAT on basic foods or the reduction in the price of public transport passes and multi-trip tickets.
These measures were included in a decree-law approved last December with the aim of containing the economic consequences of the war in Ukraine, especially in terms of inflation. But they had an expiration date, next June 30, and can only be extended with another decree law approved by the Council of Ministers.
The First Vice President and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, has already announced her intention to maintain the VAT reduction on basic food items until price levels are “more adequate”. With regard to the rest of the measures, Calviño said that the Government is carrying out an analysis of which ones will be maintained and which ones will be permanently eliminated.
Likewise, the minister pointed out that the most certain thing is that the extension of these measures will already be dealt with at the end of the month, so everything indicates that it will be this week, either at the meeting on June 27 or in an extraordinary Council, to that the extension enters into force from July 1.
In the absence of the Plenary of Congress as a consequence of the dissolution of the Cortes due to the electoral advance, it is the Permanent Deputation, the only body that remains standing, who will assume the power to validate or repeal the measures adopted by the Government via decree law.
END TO 20 CENTS FOR CARRIERS
Among the aids that expire on June 30 and on which the Government will rule are the reduction in the price of passes and multi-journey tickets for public transport (not the Renfe suburban and medium-distance discount, which is maintained all year long). year), the discount of 20 cents per liter on fuel for the professional road transport sector or aid to the autonomous communities and town halls for gasoline for public buses.
In terms of energy, it is necessary to decide whether or not to extend the VAT reduction on the electricity bill from 10% to 5% applied to consumers, companies or individuals, with a contracted power of up to 10 kilowatts. This also includes the reduction of the VAT rate applied to the receipt of natural gas from 21% to 5%.
The extension of the temporary suspension of the Tax on the value of the production of electrical energy also ends on June 30, while the application of the tax rate of 0.5% of the Special Tax on Electricity will be extended until December 31 of this year.
Likewise, the Government must decide whether to end the 80% reduction in tolls in the electro-intensive industry; VAT at 4% for masks and 0% for goods and benefits to combat Covid; and the limitation to the maximum price in the butane bottle. Another issue is whether or not the objective cause for dismissal is renewed in companies that have benefited from some aid due to the increase in energy costs.
EXCEPTIONS IN HOUSING
In addition, if there are no changes in July, the extraordinary extension of the habitual residence lease contracts will end, the procedures and launches will be allowed again and the negotiated procedures without publicity will be suspended. Through the latter procedure, public buyers were allowed to purchase supplies and services in the shortest possible time.
The exemption for the owner of the fishing vessel or vessel and its substitute is also pending review, provided that the fresh catch enters the port by sea. The same occurs with the extension of ERTEs in companies and workers in the Canary Islands affected by the La Palma volcano.
