Spirit prices to rise - but not wine or beer

Yesterday, the Spanish government gave the green light to introduce tax increases on alcohol and cigarettes - which come into force as of today.... nothing like a little bit of notice is there!

The increase for alcohol is 10% - but this only applies to spirits and NOT wine or beer, increasing the price of pure alcohol from 8.30 euros per litre up to 9.13 euros per litre - representing an increase of 83 cents. Translated to an average bottle of whiskey, the price will go up by about 35 cents, so not a huge blow really.  It will be interesting to see whether the bars will pass on this price rise - my bet is that they will absorb the cost, at least initially. but time will tell.

Official shop licensed to sell tobacco products

As for cigarette prices, there are different rates dependant on the brands, but on average a packet of 20 cigarettes will increase by 15 cents - adding an extra 1.50 euro onto a carton of 200.

The tax structure on tobacco prices has also increased dependant on the sale price, in fact more so than on cigarettes.

Cigarette sales have fallen by 14.1% over the last year whilst rolling tobacco increased by a staggering 46.4% and this is the fourth tax increase bought in by the Government under Prime Minister Mariano Rajoy .

The Minister of Finance, Cristobal Montoro announced that the tax increases will raise in the region of 700 million euros per year - with the vast majority, 600 million from the cigarette and tobacco increases. These changes will be included in a royal decree published today and come into immediate effect.

Don´t think it will put any of these off!

Although these tax increases will raise a massive amount of money for the cash strapped Spanish government, I can´t see it adversely affecting sales on these products. Cigarettes, tobacco and alcohol are still significantly cheaper here in Spain than in the UK and holiday makers will continue to stock up before going back home.

But remember to buy your cigarettes in the resort at a authorised store such as Eurotobaco - there are plenty of outlets across Benidorm and NOT at the so called "Duty Free" shop inside Alicante airport - they are more expensive there.