Edition 1453
09 December 2017
Edition: 1453

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Smokers lined up as deficit scapegoats

by TPN/ Lusa, in News · 27-09-2012 09:25:00 · 1 Comments

Tobacco taxes may be subject to a 30 percent hike in the new year following a proposal from the CIP – the Business Confederation of Portugal.

“The idea was very well received by Prime Minister Pedro Passos Coelho and the Minister of Finance, Vitor Gaspar, who promised to analyse the sums involved and the potential benefits,” said CIP President António Saraiva.
The issue reflects the extent of ongoing debate as to just how the state should square the circle of raising revenues in a contracting economy.
Thus far, tobacco tax revenues have slid 10.8 percent on last year to total €739 million, with only 50 percent of the forecast annual level actually collected through to the end of August.
With consumption down, this should still see the state pocket somewhere in the region of €1.3 billion from tobacco tax by year-end and a 30 percent rise in tax might therefore be expected to bring in somewhere around €400 million annually.
However, according to João Passos, the President of Tobacco Wholesalers of South Portugal, the outcome would not be so linear.
“Tobacco producers currently report a fiscal incidence level of 80 percent and hence any increase will certainly bring consequence, especially in terms of a greater hypothetical imbalance with Spanish fiscal duties on tobacco”, said Passos before forecasting a surge in criminality and the contraband tobacco that currently accounts for a loss of 20 percent in state tobacco revenue.
In contrast, state revenues from fines levied for traffic infringements continue to rise after jumping 190 percent between 2010 and 2011.
The first eight months of 2011 saw an 18 percent year-on-year rise to exceed €64 million and already total over a third more than the entire amount of road highway traffic fine revenue collected in 2010.

Comments

Well, Duck Houses (or whatever it is that floats the boat of a Portugese Politician). I expect trade will head off underground. That'll be good then.
by Cesspit Europe from UK on 30-09-2012 08:15:00

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Edition 1453
09 December 2017
Edition: 1453

Read this week's issue online exactly as it appears in print.

Twitter