Spanish Government Poised to Increase Tobacco and Alcohol Taxes

As the Spanish government strives to convince the European Commission that it is making sufficient efforts for next year's deficit target of 3.1% to be achievable, it has been decided that smokers and drinkers are once again among those who will be targeted by tax increases next year.
 

It is anticipated that an extra 2,000 million euros of government revenue can be generated by increasing the "special taxes" on sugar drinks, alcohol and tobacco, with a further 5,000 million likely to come from the elimination of certain company tax concessions and other fiscal policies. Another measure which will be passed by Cabinet on Friday is the imposition of a 1,000-euro limit on cash transactions, an initiative which is designed to clamp down further on the country's “black economy".
 

Exactly what the price increase is likely to be on a packet of cigarettes or a bottle of wine is not yet clear, but there is little doubt that in the New Year members of the public will be all too aware of them!