Spain to Cut VAT on Power Bills in Response to Surging Inflation

Spain will again cut value added tax on power bills as the government takes fresh steps to ease the burden of surging inflation, Prime Minister Pedro Sanchez said.

The measure reducing the rate to 5% from 10% will be included in a package the government will approve at an extraordinary cabinet meeting to be held Saturday, he said in comments to lawmakers Wednesday. The government had previously cut VAT on electricity to 10% from 21% in June last year.

The step marks the government’s latest attempt to show voters it can respond to concerns about the squeeze on household budgets ...