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Spain Mulls Hike On 'Sin' Taxes

by Ulrika Lomas, Tax-News.com, Brussels

23 November 2001

The Spanish government is considering raising 'special' taxes on products such as petrol, tobacco and alcohol to come into effect next year.

Finance Minister Cristobal Montoro has confirmed that the government is mulling over the measure but he said that any increase will be of a 'moderate' nature such as an additional 3 per cent on petrol, 8 per cent on spirits, 5% on beer 1.6% on tobacco.

The taxes have been frozen for the last three years during which time inflation has risen by 7.7 per cent.

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