Plans for change in tax structure and increase in IVA

The Government is planning to raise indirect taxes – IVA, excise duty on alcohol, tobacco and petrol – next year as part of its strategy to reduce the budget deficit to 3% of GDP by the end of 2012, part of a change in the tax structure which will result in less taxes on labour and more on consumption.

Increasing IVA and excise duties is expected to yield a return of around €8 billion for the government. The plan also includes reducing social security contributions.

The plans were announced today by the Minister of Economy and Competitiveness, Luis de Guindos.

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