The cabinet decided on Friday to make an immediate move to generate income by increasing taxes on petrol and cigarettes. The move will bring in 2.3 billion € as a packet of 20 cigarettes will cost 19 cents more and petrol and diesel gets hit with 2.9 cents extra tax per litre.

You can guarantee on it.  The spanish people are just realising the crisis is hitting home eg in our neck of the woods, many shops lying empty, local businesses closing or having to reduce staff hours or lay them off etc, and what does the government do?  Make it just that little bit harder for everyone.   

Following the increase in taxes on cigarettes announced by Elena Salgado over the weekend, today the price of a packet of 20 Fortuna or Marlboro have increased in price by 35 cents. A greater increase has been noted in rolling tobacco, where some brands are set to be 52% more expensive. Ducados negro now costs 3 € a packet.
Meanwhile the Government has ruled out increasing IVA VAT to try and fill the growing finance black hole, but has said it will be evaluating other taxes. Carlos Ocaña, the Secretary of State for Hacienda said increasing VAT now would ‘not be a good measure at this moment’.