Irish wine consumers pay 624% more excise than their fellow Europeans
According to NOffLA, over 50% of independent off-licences across Ireland could close if excise is increased in Budget 2016
Print2 June 2015
The National Off-Licence Association (NOffLA) has released figures as part of its Budget 2016 pre-budget submission to the Department of Finance which shows that Irish wine drinkers are paying on average 624% more excise on wine then their European counterparts.
As part of the submission, NOffLA has also released the results of its 2015 members survey which shows that 51% of off-licences across Ireland will struggle to remain open if the current level of excise is increased in Budget 2016, jeopardising thousands of jobs.
The survey also revealed that 78% of respondents do not expect an increase in turnover in 2015 in the current economic climate and taxation regime, thus preventing investment in the local economy and broader community. Of those asked, 70% stated they would hire one or more additional staff members and 42% would increase staff pay if the excise increases of Budget 2013 and 2014 were reversed.
Since 2008, the independent off-licence industry has lost 3,000 jobs and NOffLA is calling on the government to protect the remaining 5,800.
Evelyn Jones, government affairs director NOffLA said that while there has been a general improvement in the economic climate, members like other SMEs all across Ireland are operating in very challenging conditions. “The 2015 Members Survey clearly illustrates how these challenges are further aggravated by government policy in terms of taxation and an uneven landscape where large multiple retailers can benefit from heavily discounting alcohol to drive footfall,” she said.
“The disparity in the taxation of wine when compared to other alcohol products is a clear example of how legislation needs to reflect the trading environment, supporting SMEs and encouraging the responsible retail of alcohol. Ireland is currently the most expensive country in Europe in relation to excise on wine which is stunting the ability of SMEs all over Ireland to invest in their businesses in the short, medium and long term. The punitive levels of taxation make it impossible for independent retailers to forecast with any certainty in terms of expansion and investment in new employees, their premises and new products thus inhibiting their long-term viability”.
“We are calling on the government to reintroduce a ban on below cost selling of alcohol. Apart from the significant annual saving to the exchequer of €24 million, the ban could be introduced at no cost to the exchequer and significantly contribute to addressing the irresponsible retailing of alcohol”.
Jones also said that Budget 2016 is an opportunity for government to deliver on its promise of supporting SMEs.
The 2015 NOffLA Members Survey found:
- 50% reported a decline in turnover in 2014 when compared to 2013
- In 2014, 52% of respondents saw a decrease in wine sales of up to 30%
- 39% of respondents saw a decline in beer sales and 51% saw a decline in the sales of spirits of up to 30%
- Close to 50% (46%) cited the current level of excise, as increased in 2013 and 2014, as the main reason for a decline in business
- 78% of respondents expect their turnover to either remain the same or decrease in 2015
- If excise duty is increased in Budget 2016, 51% will struggle to remain open and 44% will be forced to reduce staff by at least one member
- If the excise increases of Budget 2013 and 2014 were reversed 70% would hire one or more additional staff members and 42% would increase staff pay
- 86% of independent off-licences retailers do not believe the government is doing enough to support SMEs
Related Articles
NOffLA announces Irish Wine Show Star Awards winners →
Fans 0
Followers