Budget 2025: Main measures that affect the Irish grocery retail industry
ShelfLife monitored the announcements to update our readers on how Budget 2025 will affect the Irish grocery industry
Print1 October 2024
The Budget for 2025 has been unveiled this afternoon (1 October) by Finance Minister Jack Chambers and Minister for Public Expenditure & Reform Paschal Donohoe in Leinster House.
ShelfLife monitored the announcements to update our readers on how Budget 2025 will affect the Irish grocery industry.
In his opening address, Minister Chambers, said: “Today’s Budget is my first and it is also unique in the opportunity it presents to plan, transform and deliver for the future. And that future is not just about next month, next year or the next decade, it is about ensuring that the children born today in Ireland and every day from here on can live prosperous and fulfilled lives.
“They will enjoy better healthcare, live longer, have better education, more housing and significant infrastructure improvements as a result of the decisions made today.
“But we also need to give hope to young people now and to their families, their parents and grandparents whether living here in Ireland or abroad that the decisions being made today will help them afford a home of their own and live a life here in Ireland achieving their full potential. Budget 2025 puts the country on a firm footing for the future.”
Budget Measures
Minister Paschal Donohoe delivered the below measures in his budget speech.
Tobacco
The excise duty on a packet of 20 cigarettes has been increased by €1, with a pro-rata increase on other tobacco products.
This will bring the price of cigarettes in the most popular price category to €18.
This measure will be enacted tonight.
e-Cigarettes (e-liquid excise)
A domestic tax on e-cigarettes has been introduced.
The tax will apply to all e-liquids at a rate of 50c per ml of e-liquid. A typical disposable vape contains 2ml of e-liquid, and costs in the region of €8.
This new tax will bring the price of such a product to €9.23 including VAT.
According to Gov.ie due to the operational and administrative challenges associated with this measure it will not commence until the middle of next year and therefore will be subject to a commencement order.
Cider
The excise relief introduced last year for independent small producers of cider and perry to cover what is known as other fermented beverages which includes products such as mead and wines other than grape wine such as elderberry wine, strawberry wine etc. has been extended.
In addition to this, this relief to higher strength cider and perry produced by independent small producers has been extended.
Reduced VAT rate of 9% for gas and electricity
As part of the government’s cost-of-living package, the 9% reduced VAT rate for gas and electricity has been extended for another six months to 30 April 2025.
Minimum wage
From 1 January, minimum wage will increase by 80c to €13.50 per hour.
Small Benefit Exemption
The Small Benefit Exemption allows an employer to provide limited non-cash benefits or rewards to their workers without the payment of income tax, PRSI and USC.
The annual limit provided for in the exemption has been increased from €1,000 to €1,500 and will also permit five non-cash benefits to be granted by an employer in a single year under this exemption.
This change will allow greater flexibility to employers in giving non-tax rewards to their employees.
This means that workers may receive up to three additional tax-free rewards or gifts, for instance to reward exceptional performance, or mark significant life events.
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