Spanish Parliament Approves Anti-Crisis Package, Cuts Electricity Tax

Spanish Parliament's Lower House (Spanish Congress of Deputies) has expressed its approval of an anti-crisis package worth 5 billion euros (5.8 billion US dollars or around Rp98.1 trillion) to mitigate the economic impact of the war in the Middle East.

"The Congress approved a resolution regarding the steps taken by the government to reduce the impact of the war in Iran on families and businesses in Spain," the agency's official statement said, quoted by Sputnik, Friday, March 27.

The document, which is drafted in the form of a royal decree, includes, among others, tax cuts for fuel, gas, and electricity. The value-added tax (VAT) for energy sources will be reduced from 21 percent to 10 percent. Additional tax relief will also be imposed in the energy production and distribution sectors.

"This is an immediate response to the economic consequences of the war," Economy Minister Carlos Cuerpo said from the parliamentary rostrum when presenting the draft.

He added that around 20 million households are estimated to be able to reduce their electricity bills.

Last week, Spanish Prime Minister Pedro Sanchez announced that the government had approved a package of 80 measures worth 5 billion euros to support the national economy and mitigate the impact of the conflict in the Middle East.

On February 28, the United States (US) and Israel launched attacks on targets in Iran, including in Tehran, which caused damage and civilian casualties.

Iran then retaliated by attacking Israeli territory and US military facilities in the Middle East, as a form of self-defense.

As a result, shipping through the Strait of Hormuz, an important route for the distribution of oil and liquefied natural gas from Persian Gulf countries to global markets, has stalled.