Spain to Cut Fuel, Electricity Taxes in Economic Relief Package

Spain’s government is set to announce on Friday cuts on fuel and electricity taxes as part of a broad aid package to counter the surge in energy prices due to the war in the Middle East, according to people familiar with the matter.

VAT on gasoline and diesel will be reduced to 10% from 21%, the people said, asking not to be named as the matter isn’t public yet. A 5% special tax on electricity will also be reduced and a 7% tax paid by power generators will be scrapped, the people said.

Prime Minister Pedro Sánchez is due to ...