Alcohol and tobacco will take a new hit in the State Budget if the government gets its way. Justifying the decision on the “expected growth in private consumption” (which actually says very little for the various health awareness campaigns mounted over the years), calculations are that state coffers will rake in another €80 million in taxes on both social vices in 2026 – bringing the total amount pouring in on these products to well over €2 billion.
The tax on tobacco is expected to yield €1.676 billion in the document – €72 million (4.4%) more than in 2025, while the tax on alcohol, alcoholic beverages and beverages with added sugar or sweeteners (IABA) is expected to yield €317 million – an increase of €8 million (2.5%), with the executive citing the ‘trend observed in 2025’ as justification.
A number of stories are appearing today, giving details of changes likely as a result of the State Budget, many complaining that this is all being done to dull controversy over the prime minister’s latest trials and tribulations, and detract from the electoral messaging feverishly underway ahead of municipal elections on Sunday.
These municipal elections are being seen as ‘very important’: AD (the government coalition) wants to consolidate support throughout the country, and ‘win’ uncertain municipalities away from the left, while PS Socialists are said to be in the unenviable position of facing “unprecedented electoral retraction”. A study by market specialists GkMetris puts the PS on ‘elevated’, even ‘critical’ alert in 122 municipalities (out of a total of 308) – with those south of the Tejo being seen as the most vulnerable.
Source: SIC/ Expresso
