Excise increase a ‘ludicrous proposition’, says ‘Support Your Local’
With Ireland already holding the dubious honour of having the second highest level of alcohol excise in the EU, any further rise would be "ludicrous", according to the Support Your Local campaign
30 August 2016
Recent commentary in the media suggesting that the government might increase excise on alcohol in the upcoming budget has been heavily criticised by the Support Your Local campaign, on the grounds that the Irish consumer is already subjective to some of the most punitive drinks taxes in Europe.
Support Your Local is highlighting the fact that alcohol excise in Ireland is the second highest in the EU. Currently, 31% or €1.42 of a pint (€4.64 pint) is tax (VAT and excise). For a €7 bottle of wine, 64% or €4.50 is tax. This rises yet again for whiskey: 68% or €16.41 of a €24 bottle of whiskey is accounted for by tax.
Speaking on behalf of the campaign, Padraig Cribben, CEO of the Vintners Federation Ireland said: “The notion of a €1.50 increase in the pint or an increase in excise duty on spirits by €1 per half-glass is a ludicrous proposition. The drinks industry, and pubs in particular, support employment in towns and communities all over Ireland. We should be looking for a decrease in Ireland’s punitive excise rates as opposed to flying kites about job killing taxes.”
Support Your Local has urged the government to reduce excise by 15% in next October’s Budget for a number of reasons including the positive economic contribution the industry makes across every county in Ireland and to compensate for the negative effect of Brexit, such as exchange rate uncertainty, impacts of a new “border” and the impacts that Brexit might have on British tourists and their spend in Ireland.