Inflation will see government receiving ‘extra €900 million’ in taxes

The benefit to the government of rising inflation has been spelled out by secretary of state for fiscal affairs António Mendonça Mendes who predicts consumers will be paying an extra €900 million due to rising prices. In answer to questions raised in parliament, he stressed the State Budget (due to be passed in its final reading tomorrow) includes €1.8 billion to try and address the issue of inflation. Iniciativa Liberal nonetheless sees the situation differently: “the State is benefitting from increased revenue not because the economy is growing but because the cost of things are increasing…” says MP Carlos Guimarães Pinto.