The Spanish government has announced it will gradually phase out the electricity production tax.

The Spanish government will cancel a major electricity tax. The government of the country stated that the cancellation of the 7% tax levied on the electricity generation process will help reduce electricity expenses for residents and businesses, while also encouraging the transition from fossil fuels to clean energy. The tax will be gradually phased out and completely abolished by 2028. It is estimated that the electricity expenses for ordinary consumers will decrease by about 6%. The specific phased cancellation plan includes a 30% tax reduction in the third quarter of this year, a 40% tax reduction in the fourth quarter, a 50% tax reduction in 2027, and the complete cancellation of the tax by 2028.