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The Spanish Government announced on 24 June a 10% tax rise on spirits, while keeping beer tax unchanged. Wine will remain untaxed in Spain.
The excise rise will do little to help an already struggling spirits market: it has contracted from 30.6m cases in 2003 to just under 21.3m cases last year, according to the IWSR (a compound annual decline of -4%).
Last year the Spanish Government received tax on spirits of €745m, a -3% reduction on 2011. The decline was attributable to the volume loss.
Bosco Torremocha, CEO of FEBE (the association of spirits producers in Spain) has warned that "a tax rise will produce the opposite of the desired effect, as expected volumes declines – and therefore direct and VAT tax takings – will offset any gains by the extra tax". Torremocha also warned that the duty increases will lead to further job losses in Spain's key agriculture, tourism and horeca sectors. Spain currently has the highest unemployment rate in Europe with a jobless population of 26%.
The last tax increase on spirits in Spain occurred in 2005.
by S. C.
10 july 2013, World News > Europe