Financial help extended but tax on electricity to rise

In their final session of the year this week, the Council of Ministers approved the extension of many of the emergency measures to help alleviate the cost of living, but one thing that is set to increase is the IVA payable on the electricity bill.

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The IVA reduction on basic food has been maintained, at least until June 2024, with 0% IVA continuing for essential foods, such as milk, vegetables, flour, and eggs. The 5% IVA will continue to apply to oil or pasta (instead of reduced to 10%).

The reduction to IVA on electricity has also been maintained, but at a less attractive rate. Skyrocketing prices and pressure from consumers led to the IVA on electricity being lowered to 5%, instead of the 21% that we were paying. For 2024, a reduction is maintained but will have IVA of 10% until the end of 2024.

It should of course be noted that the cost of electricity affects everything from manufacturing to retail, not just household consumption, and so there is a considerable vulnerability in prices of everything as a result of higher costs.

Another measure that has to do with the energy supply is the expansion of the aid of the social electricity bonus, the discounts (65% for the vulnerable consumer and up to 80% for the severely vulnerable) and the extension of the beneficiaries will not end in December 2023, as planned, but are extended into the new year.

In 2023, public transport has been subsidised and this aid will continue in 2024. In addition, the transport bonuses, in line with the 2023 aid, will be for all users.

The limit has been raised to be able to take advantage of the measures of the Code of Good Mortgage Practices, thus expanding the number of possible beneficiaries.

In addition, the suspension of amortisation fees for changing mortgages is extended to 2024 (not only to change from a variable mortgage to a fixed one, but now also to a mixed one).

Anti-eviction measures for vulnerable consumers, among others, are also extended.

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