Central government announces plans to scrap the ‘sun tax’ this year

The Sanchez administration has commited to eliminate the controversial ‘sun tax’ before the end of the year, according to Minister Teresa Ribera

The Pedro Sanchez administration has assured it will eliminate the controversial ‘sun tax’ before the end of the year. In detail, it plans to repeal the legislation that taxes solar energy and self-consumption initiatives in Spain. The administration plans to do so through a Royal Decree of access and connectivity, which it must approve in case the self-consumption law, repealed last year by the PP Executive, does not move forward.

Minister of Ecological Transition Teresa Ribera stressed that repealing this law is a priority for the government. She added that plans are to do so before the end of the year.

The Sanchez minister highlighted that this sun tax will be eliminated, among other things, because it represents an “absurd hurdle” to self-consumption. Also, it is linked to tax collection that “is ridiculous and makes no sense”. It also plans to facilitate sharing this energy in the urban and domestic sectors.

The ‘sun tax’ is a laughing stock in the EU

In this sense, the government is committing to eliminating bureaucratic hurdles, as well as the back-up tolls. Ribera also recalls that the so-called ‘sun tax’ has been a laughing stock in the European Union; it is a senseless distortion.

This move is in line with the decisions incorporated in the European Union’s winter agenda “to grant recognition to the electricity contributions to the grid made by self-consumption energy production,” Ribera said.

The government believes that the best course of action is eliminating the tax through the draft bill on electric self-consumption; which at some point was backed by all political parties except PP and Foro Asturias; this first option has the advantage of the wide support for self-consumption in Spain, according to an article published by EFE and quoted by eldiario.es.

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