According to the proposed State Budget for 2026, revenue generated by the tobacco tax is expected to increase by 4.4%, or €71 million, to a total of €1.67 billion, "as a result of expected growth in private consumption."

Meanwhile, IABA revenue is expected to increase by €8 million, 2.5% more than the amount collected in 2025, "as a result of the trend observed in 2025," the document explains.

Looking only at these two taxes, alcohol and tobacco, the estimated revenue is €1.99 billion. This amount represents 5.3% of indirect tax revenue (including the ISP and VAT, the most important) and is slightly below the 3% of total tax revenue.

Regarding expenditures, the Executive anticipates a 2.2% increase in state fiscal expenditure on IABA, reaching €72.2 million. "The forecast is essentially justified by the tax expenditure associated with the 'Alcohol for therapeutic and sanitary purposes' item and, to a lesser extent, exemptions related to non-alcoholic beverages, which are expected to total €62.6 million, representing 86.7% of the IABA tax expenditure in 2026," the government explains.

The tobacco tax, however, does not generate any tax expenditure in the State subsector, according to the 2026 State Budget proposal.