Spain quenches thirst for leisure: tax collections on alcohol skyrocket by more than 40%


There has been a strong increase in the figures of taxing alcohol and beer on consumption itself in the data of the tax agency.

M.  Image of bodega-bar El Pimpi located in
Image of Bodega-Bar El Pimpi located in Málaga.EFE

As a result of increased activity and consumption, inflation and wage increases, tax collections continue to grow very strongly with which they try to cope with the rise in prices. So much so, in the accumulated figure for the first four months of the year, the Treasury has already entered 85,922 million euros, a figure never reached before in April and which represents almost 20% increase compared to the same period in 2021.

The most contributing tax is, as always, personal income tax, although it is closely followed by VAT. But analyzing the data more deeply, a growth is just as impressive as it is: alcohol tax experience, which continued with a high growth trend, the tax agency reported in its monthly report published yesterday. 43.8% deepened in the year compared to 36% registered till March.

This, in particular, has two figures: a special tax on alcohol and derived drinks and one that levies a tax on beer. Particularly sharp is the accumulated rebound of the first figure, which increases by about 60% and reaches 258 million euros accumulated from 90 million of the second taxes. And if you go into the accumulated consumption, the data which is also offered by the tax agency, it is found that the citizens The demand for these products has increased significantly.,

In the first three months (this is updated with a delay of one month compared to data collection) the consumption of beer subject to tax was 760 million liters, This is higher than the 2021 figure and slightly less than the period recorded in 2020, a period that was affected by imprisonment only in its last part.

The quantity called pure alcohol is consumed 18 million liters, above the figures for 2021 and 2020, corresponding to 2019 and even higher than the figures submitted in the first quarter of 2017. The applicable rates are very similar in all those years, the rate applicable to wine compared to beer. And inflation, in this case, does not affect the sources of the tax agency, as they are the taxes that turn on the amount of the product.

In addition, in these consumption figures Doesn’t include the bulk of Easter, nor large-scale events that did not take place in previous years and where consumption skyrocketed, such as the April Fair in Seville or even San Isidro in Madrid. That is, it seems that consumption and collection figures will continue to grow strongly, thus evidence of the thirst for leisure in Spain and still persists.

pay raise

Coming back to that great contribution being made by IRPF and VAT, Income Tax already collects more than 37,000 million revenue while VAT is 33,400 million and grows at the rate of 32%, The Treasury highlights that the overall good performance of the collections is due to growth in employment, an increase in the effective rate with an increase in wages and pensions, and an improvement in spending with price increases.

Thus, the tax agency cites the above factors: salary increase, that is, to cope with high inflation, workers registering increase wages, which, in turn, increase income from personal income tax. it is considered double punishment Because, on the one hand, these wages rarely increase in line with inflation and, therefore, there is a loss of purchasing power; And, on the other hand, workers who register an increase will have to pay more for income tax. For this reason, there is broad agreement in the economic sphere, saying that reducing inflation is not reducing taxes, but not doing so, as the Treasury has decided to do, is a covert increase.

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