Spanish PM announced new package worth €10 billion to counter rising prices

Photo by photocosmos1

The proposal include VAT cuts, scrapping sales tax off essential food items and a €200 one off payment for millions of households 

Spain´s Prime Minister Pedro Sánchez has announced another set of measures against rising prices across the country, after the Russian invasion of Ukraine. According to a report by the BBC on Wednesday, December 28, the new measures, dubbed as an “anti-crisis” package is worth €10 billion.

While discussing the details of the package, Sánchez said that through these measures, “the government would protect the middle class and workers amid the rise in the cost of living, energy and food”.

The package includes several proposals such as reducing the VAT, as well as a one off payment of €200 for households in Spain, that earn less than €27,000 a year. The government through this package, also plans to extend the tax cuts on gas as well as electricity for another six months.

Aside from this, the public transport will continue to remain subsidised, as the discount on season tickets has been extended until the first six months of the year.

The Spanish government has also planned to remove sales tax on essential food items for a period of six months. This includes bread, milk, cheese, eggs, fruits and vegetables. The government also plans to bring down the taxes on other food items such as pasta and cooking oil.


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