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POOR ALCOHOL SALES DAMAGING THE TAXMAN

POOR ALCOHOL SALES DAMAGING THE TAXMAN

As yearend accounts are being calculated, it looks like a lack of spending on some products has left to a considerable deficit in the money anticipated by the government from increased taxes.

In particular, the increase in tax on alcohol approved in late June has only resulted in an additional 7 million euro contributed until June, far short of the 46 million euro target they had anticipated by the end of the year.

The reason for this shortfall has been put down to consumers stocking up before the tax went up, with a spokesperson for the tax office saying, “The tax on alcohol continues to suffer the impact of hoarding prior to rising rates in July and, despite being November, the first month with revenues derived from the increase, revenues fell by 13.5%”.

Data on alcohol sales first started being compiled in 1995 and sales this year have shown the worst figures ever recorded between July and September, in particular wholesale spirits such as whiskey, gin or vodka only selling 19 million litres, whereas in the second quarter of 2013, prior to the tax increase, there were 31 million litres sold, the highest since 2004.

The tax office also feel that as well as hoarding spirits, consumers may have shipped their tastes more towards beer, reporting that between July and September, over 1 billion litres of beer were sold, the best figure for the period recorded.

The second blow to the tax collectors has been the new tax on lottery winnings. The treasury hoped to raise 824 million euro be shaving off the jackpot wins of lotto players, but the reality has shown that they have only managed to take 250 million euro up to November.

However, as the latest figures are only available until the end of November there may still be a seasonal bonus for the taxman, with Christmas drinks and El Gordo lottery not being included in the totals so far, if we did all eat, drink, be merry and gamble, we may save the taxman some further embarrassment and, more importantly, prevent whatever the next batch of taxes might reveal.

Filed under: http://www.theleader.info/article/42138/

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