The Government approves this Monday the energy tax and the transport bonus

The Government holds this Monday the last Council of Ministers of the year, in which it is expected to approve a battery of economic measures, from the extension of the tax on large energy companies for 2025 to the extension of transport bonuses or the increase in pensions.

This Monday a royal decree law will be approved with the extension of the tax on large energy companies to 2025, a commitment of the Government with its partners -ERC, Bildu and BNG- that everything indicates that it will not achieve the endorsement of Congress given the opposition of PNV and Together.

In fact, after the repeal of the tax this week – with the votes of PP, Junts, PNV and Vox – the Government will have to approve it again instead of extending it as planned.

On the other hand, at the moment the approval of the increase in diesel taxation to bring it into line with that of gasoline has not been confirmed, something that the Government intends to do in an independent royal decree law that it is still negotiating with its partners.

Public transport bonus

As announced by the leader of Podemos, Ione Belarra, this Monday the maintenance of public transport aid that has been in force since September 2022 will also be approved during the first half of 2025, thus continuing to provide free Renfe passes. for Cercanías, Rodalies and the conventional Middle Distance for six more months.

Likewise, the current discounts for some railway lines and the free bus lines under the jurisdiction of the State for recurring travelers will be maintained, as will transport passes in the Canary Islands and the Balearic Islands, and direct aid to promote the reduction of, at least, 50% of the price of multi-trip passes and tickets for urban and interurban collective transport.

The Government subsidizes the 30% reduction in transport to the autonomous communities and local entities that commit to implementing and complementing the discounts so that, at a minimum, the price of the land transport services under their jurisdiction is reduced by half to regular travelers.

Suspension of evictions

Belarra also announced that the suspension of evictions of vulnerable groups will be extended for one year, until 2025, a measure implemented in 2020 due to the pandemic.

But it is not confirmed that the guarantee of water and energy supply to vulnerable consumers will be extended, nor that the schedule for the progressive reduction of the social electricity bonus will be modified, which, if maintained in its current terms, would be at July 2025 at 35% for vulnerable consumers and 50% for severely vulnerable.

Budget Extension

Another of the measures that the Council of Ministers will approve is the royal decree law on budget extension, with which some elements of the 2023 accounts will be adjusted – which are the ones that are currently in force, since those for 2024 were never approved – to adapt them to the next exercise.

The budget extension is automatic when it reaches January 1 without approved accounts, but normally it is necessary to make some adjustments, which can range from technical issues – for example, to eliminate the allocation of a work that has already been done – to others. more politicians.

In the case of the extension of the 2023 accounts to 2025, the salary increase for public employees, which is expected to begin negotiating in January, is ruled out.

Pension increase of 2.8%

The revaluation of pensions is also usually approved before the end of the year, which by 2025 will be 2.8%, an increase that was calculated with inflation data between December 2023 and November 2024 and that will be applied to contributory pensions. and to those of the passive classes.

Social Security has not yet detailed how much the minimum and non-contributory pensions will increase, which, according to the latest pension reform, must increase more than the rest. The increase in the minimum vital income (IMV) is also pending.

Likewise, the current interprofessional minimum wage (SMI) must be extended pending the new amount that would be applied later with retroactive effects from January 1.

Aid for the purchase of electric vehicles

Also up in the air is the continuity of aid for the purchase of electric vehicles and the installation of charging infrastructure, the so-called Moves III Plan, which in its current terms ends on December 31.

From the vehicle manufacturers’ association, Anfac, they point out that the Executive would be working to continue the aid beyond the end of the year and also demand that the 15% reduction in personal income tax be extended for the acquisition of an electric vehicle, which ends December 31.

On the other hand, it does not seem that the VAT reductions for basic foodstuffs or electricity will be extended beyond the end of the year, which has been normalized throughout the year with a system that allowed the rate to be lowered to 10 % when the wholesale price rose above 45 euros per megawatt hour (MWh).

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The Government approves this Monday the energy tax and the transport bonus