Tax hike hits cigarettes & petrol

[Ian]

The Government has officially admitted the depth of the recession and announced that they expect a 3.6% reduction in G.D.P. It’s quite a change from the previous forecast of only 1.6%. They also announced that the long period of reduced taxes is at an end. Doesn't really take an idiot to work out how bad it is, but who am I to say....??

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.

I can understand the cigarettes going up. But now everything increases in cost as a petrol price increase, increasing the cost to suppliers etc and making goods more expensive....ho well, another great idea on how to boost the economy.

Soon most supermarkets will only be selling their own crappy brands at inflated (imaginary low cost) prices. Mercadona have drastically reduced the amount of brands they sell for there own name stuff.