MADRID – The Spanish government, led by President Pedro Sánchez, announced a new package of anti-inflation measures for 2024 in the last cabinet council of the year.
With these measures, Pedro Sánchez and his government intend to relieve economic pressure on citizens. Additionally, the announced measures will be implemented through a Royal Decree.
Continued tax cuts and aid
VAT on food: The reduced VAT rates on basic food (0%) and on pasta and oil (5%) will continue.
Taxes on banks and energy companies: These tax measures will remain in force in 2024, with adjustments for investments related to decarbonization.
Social support: Spain will extend the discount on electricity bills through the social voucher, as it is the protection against evictions for vulnerable families.
Banking measures and transport benefits
Banking commissions: A six-monthly pause is introduced on variable credit commissions.
Transport: Free Renfe subscriptions and discounts on public transport continue all year round, provided regional authorities contribute.
Increase in pensions
Pensions: Retirement benefits will increase in line with inflation, by 3.8%.
New measures for 2024
Attention to Vulnerable Groups
Banking commissions: The elderly and people with disabilities will not have to pay commissions for cash withdrawals at counters anymore.
Income support: The government will transfer the implementation of the Minimum Income Program to regional authorities that wish it.
Gradual withdrawal of energy-related measures
The Prime Minister has announced that his government will gradually withdraw some energy-related measures in 2024. However, he did not provide details on how and in what time frame this will happen.
Changes in energy taxes
Energy prices: With the decline in energy prices, the government is gradually withdrawing tax cuts on gas and electricity.
VAT on gas: From February, VAT on gas will return to normal values.
These measures mark an important step in Spain’s ongoing fight against inflation, striking a balance between economic support and fiscal responsibility.
Also read: IMF warns: Spanish inflation will remain around 4% in 2024
