Latest

Partido Popular in Murcia calls for end to electricity generation tax and extension of electricity VAT cut

The Partido Popular group in the Asamblea Regional de Murcia tabled a motion on 11 October 2026. It calls on the Government of Spain to abolish the electricity generation tax,…

The group of the Partido Popular at the Asamblea Regional de Murcia tabled a motion on 11 October 2026 calling on the Government of Spain to abolish the electricity generation tax, extend the reduced VAT rate on electricity and provide direct assistance to households and businesses. The motion aims to offer further relief following rising energy prices.

According to its sponsors, abolishing the Impuesto sobre el Valor de la Producción de la Energía Eléctrica would lower the cost base in the electricity market. The motion also calls for the current reduced VAT rate on electricity to be maintained and for targeted subsidies to be provided for particularly hard-hit consumer groups. The group cites social risks such as energy poverty among low-income households, as well as the burden on businesses, agriculture and industry in Región de Murcia.

The resolution has no immediate legal effect at national level. Decisions on taxes and charges of this kind are made by the Government of Spain, possibly together with the Congress of Deputies. The initiative from Murcia is therefore a form of political pressure on Madrid. According to reporting to date, the text gives no specific information on costs, offsetting measures or a timetable. Nor was a vote in the regional assembly reported on the day of publication.

The move is part of a longer-running debate about state relief measures in the energy sector. In recent years, Spain has temporarily reduced certain charges and cut the VAT rate on electricity to cushion the impact of high wholesale prices. Whether and to what extent these measures will remain in place beyond 2026 is the subject of political dispute. Supporters point to immediate relief for end customers; critics warn of lost revenue and argue for structural reform of the electricity market.

The Partido Popular group in the regional assembly also points to programmes by the regional government to save energy and expand self-generation. However, changes to the electricity generation tax or VAT rate can only be adopted by the Government of Spain and the national legislature. It remains to be seen whether the position adopted in Murcia will be taken up in other regions and how Madrid will respond to the demands.

Editor: Mira Cadena (Article created with AI assistance).

Sources

End of article

Advertisement

From the PHOTRA network