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Sin Taxes: Alcohol, Tobacco, and Gambling Will Generate Over 2.3 Billion Euros in 2025

Written by Roberta Souza
Published on 13/10/2024 at 13:47
Foto: Reprodução e créditos Gazeta 24 horas
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Tobacco, Alcohol, and Gambling Will Be the Main Contributors to the Increase of Over €2.3 Billion in Taxes

The so-called “sin taxes” – which apply to products such as tobacco, alcohol, and gambling – will generate a revenue exceeding €2.3 billion in 2025, driven by a projected 2% increase in private consumption for the coming year. This measure reflects a global trend to tax products deemed harmful to health and social well-being, aiming to increase public revenue and encourage lower consumption, according to the Jornal Econômico website.

4% Growth in Tobacco Taxation

One of the sectors that will contribute the most to this increase is tobacco, whose taxation is expected to rise by 4%, generating approximately €1.6 billion for public coffers. This increase aligns with the fiscal policies of various European countries, where the consumption of cigarettes and other tobacco products is heavily taxed. However, experts point out that, in addition to revenue, the high tax aims to reduce consumption, due to the harmful impacts of smoking on public health.

Meanwhile, the government plans to intensify educational campaigns and restrictions on advertising products related to tobacco, with the aim of discouraging the habit. However, critics of these policies warn that price increases may push consumers toward the illegal market, necessitating stricter enforcement.

5% Increase in Tax on Alcoholic Beverages

The alcoholic beverages sector will also be strongly impacted by the “sin taxes”. In 2025, the Alcohol and Beverages Tax (IABA) will see a 5% increase, generating approximately €365 million. The growing consumption of alcoholic beverages, especially among young people, has been a cause for concern for public health authorities, who support these tax measures as a way to discourage consumption.

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This increase in the alcohol tax is also part of a global movement to reduce the consumption of alcoholic beverages, given their impact on traffic accidents, violence, and chronic diseases such as cirrhosis and cancer. Furthermore, the increased revenue from these taxes will allow the government to allocate more resources to priority areas such as health and education.

Gambling and Tourism: Growing Revenue with Special Tax on Gambling

The gambling sector, both physical and online, will also be among the largest revenue generators with the “sin taxes”. In 2025, the Special Gambling Tax is expected to generate over €306 million, a 10% increase compared to the previous year. This taxation is managed by Turismo de Portugal, and part of the collected amount is reinvested in promoting tourism in the country.

With the advancement of digitalization, online gambling has grown in popularity, further boosting the revenue from this tax. However, experts warn of an increase in cases of gambling addiction, which has led the government to consider awareness measures and support for those affected by addiction.

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Roberta Souza

Autora no portal Click Petróleo e Gás desde 2019, responsável pela publicação de mais de 8.000 matérias que somam milhões de acessos, unindo técnica, clareza e engajamento para informar e conectar leitores. Engenheira de Petróleo e pós-graduada em Comissionamento de Unidades Industriais, também trago experiência prática e vivência no setor do agronegócio, o que amplia minha visão e versatilidade na produção de conteúdo especializado. Desenvolvo pautas, divulgo oportunidades de emprego e crio materiais publicitários direcionados para o público do setor. Para sugestões de pauta, divulgação de vagas ou propostas de publicidade, entre em contato pelo e-mail: santizatagpc@gmail.com. Não recebemos currículos

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