Spain plans to increase duty by 10 per cent on alcohol

File Photo EWN

HACIENDA plans to slap an extra 10 per cent tax on alcohol. The present €8.30 a litre of alcohol is set to rise to €9.13. Spain imposes one of the lowest tax rates in Europe with only Italy, Romania and Bulgaria charging less.

Wine, which is not taxed on alcohol content, is unlikely to be affected by the changes. Beer’s alcohol content is currently charged at €1.99 per litre and will probably be unchanged. The tax rate is applied to the volume of alcohol, not of beer. So a litre of beer at 5 per cent alcohol content would attract a tax on 50 milliliters of alcohol.

A definitive decision regarding both has yet to be made, government sources revealed. Once the increase goes through, retail prices will depend on alcohol content and whether manufacturers pass on all the extra cost to the consumer.  

Hacienda now intends to introduce the higher tax without delay to forestall stockpiling by retailers or the hotel and catering trade.

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