MADRID, 10 Ene. (EUROPA PRESS) –

The Congress of Deputies has approved the validation of the decree that includes the reduction of VAT on basic foods, transport aid and the increase in pensions by the CPI by 172 votes in favor, 171 against and 7 abstentions.

On the yes side there have been PSOE, Sumar, ERC, PNV, Bildu, Podemos, BNG and Canarian Coalition. PP, Vox and UPN voted against while Junts abstained.

A vote that had to be repeated because first there was a tie of 171 votes because Sumar’s deputy Gerardo Pisarello had not ratified his telematic vote.

In this situation, article 88 of the Congress Regulations says in its first point that a second vote will be held and, if the first vote persists, the vote will be suspended for the period deemed reasonable by the Congress presidency.

But already in the second vote, which was by voice vote because PP and Vox requested it, 350 votes have already been cast, of which 172 were in favor, 171 against and seven abstentions from Junts.

With this regulatory package, among many other points, the reduced VAT on basic foods, pasta and oils is extended and this same tax is modified on electricity and natural gas bills, which go from 5% to 10%, compared to the 21% original from before the energy crisis. Also included is free Cercanías and a 50% discount on regional transport.

The Government estimates that the different tax measures represent a revenue loss of 2,499 million euros. The bulk of this revenue loss is due to the VAT rates that will be applied on certain supplies of electricity and natural gas, on basic foods, pasta and oils and the limits for the application of the simplified special regime and the special regime for agriculture, livestock and fishing. Specifically, it estimates that the new VAT on these products and services will mean a loss in revenue of 1,892 million euros.

For its part, the extension of the application of the reduced VAT tax of 5% on edible oils and pasta during the first half of 2024 could lead to a revenue loss of 110 million euros. The application of 0% VAT in the first half of 2024 to basic foodstuffs, a measure that is also extended, could induce, according to the Executive’s calculations, a reduction in revenue of 734 million euros.