The measures will come into effect on January 1, 2023, and will mobilize around 10 billion euros of public resources, which will be primarily used to assist the most vulnerable groups affected by the increase in the price of food and other basic necessities and the rise in energy costs.
The first section of the royal decree-law refers to fiscal measures in the energy sector, citing in its first paragraph the reduction of VAT on solid biofuels, along with natural gas:
“Given that the situation generated by the increase in natural gas prices persists, it is considered appropriate to extend, until December 31, 2023, the reduction to 5 percent of the Value Added Tax rate that falls on all components of the invoice for deliveries of natural gas, as well as deliveries of briquettes or «pellets» from biomass and wood for firewood used as fuel in heating systems, in order to reduce its amount.”.
The extension of the VAT reduction from 21% to 5% for pellets, briquettes and firewood during 2023 is good news for biofuel consumers and the business sector.In AVEBIOM's opinion, this should be a permanent step towards establishing the measure definitively..
While indiscriminate gas subsidies may discourage energy saving, A definitive reduction of VAT on all solid biofuels of national origin – pellets, firewood and briquettes and others such as olive pits, wood chips and nut shells – would accelerate the adoption of a renewable, sustainable and local heating technology.
More information
He Royal Decree-Law 20/2022, of December 27, on measures to respond to the economic and social consequences of the War in Ukraine and to support the reconstruction of the island of La Palma and other situations of vulnerability, has been published in the Official State Gazette (BOE) No. 311, of December 28, 2022.
https://www.boe.es/diario_boe/txt.php?id=BOE-A-2022-22685