Saturday, June 29, 2013

 

The Spanish government increases taxes on alcoholic drinks & tobacco

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Spain
MADRID, June 28 - The Spanish government on Friday announced an increase in taxes on alcoholic drinks and tobacco to rake in additional 1 billion euros (1.3 billion U.S. dollars).

Taxes on alcoholic drinks will increase by 10 percent, Spain's Minister of Finance Cristobal Montoro said, while beer and wine will remain at the same price.

The government expects to collect 700 million euros from this measure, while a further 366 million euros is expected from the tax on tobacco.

File:MinisterioEconomĆ­aHacienda.svgSpaniards have seen their purchasing power decrease due to lower salaries and high unemployment. The government also increased sales tax last fall which had a negative impact on domestic demand.

Meanwhile, the government announced they would limit corporate tax deduction, increasing state revenue by 3.6 billion euros.

The government revised up its economic predictions for 2015 and 2016 hoping domestic demand would increase in the future. Spain expects the economy to grow by 1 percent in 2015 and 1.4 percent in 2016.

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