The star measure of the central Government to reduce the fuel bill has been the reduction of VAT from 21% to 10%.
Moncloa's initiative to compensate for the rampant price increase caused by the war of Israel and the United States against Iran, will have no impact in Lanzarote, or in the Canary Islands in general, since in the islands there is no VAT, but the IGIG.
The IGIG has general rates three times lower than VAT, since it was created to compensate for the distance of the islands and the complexities derived from insularity and transport.
The fiscal singularity of the archipelago in accordance with the Economic and Fiscal Regime (REF), implies that tax reductions depend in their great majority on the regional Executive.
The president of the Canary Islands, Fernando Clavijo and his economic vice-president, Manuel Domínguez, are evaluating complementary measures and are going to convene the seven parliamentary groups to establish measures that compensate for the escalation of costs.
An option being studied by the Ministry of Economy is to withdraw the regional section of the fuel tax.
