NOffLA adds to calls not to increase excise tax

“Below cost selling also allows large multiple retailers to use alcohol as a loss leader, which costs the State on average €21 million each year. Eliminating it would ensure higher standards in alcohol retailing by eliminating the heavily-discounted selling of branded alcohol.” - Jim McCabe.

The National Off-Licence Association has joined other industry representatives in calling on the Government not to increase excise duty in the next Budget and to introduce measures to stop below-cost selling of alcohol.

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Appearing before the Joint Oireachtas Committee on Finance, Public Expenditure and Reform yesterday NOffLA’s National spokesperson Jim McCabe stated, “Increasing excise duty on alcohol is too often looked on as an easy political move at Budget time. However, such measures are having a devastating effect on employment and small businesses, as well as causing a reduction in taxable consumption and a subsequent rise in the Black Economy.
 
“Below cost selling also allows large multiple retailers to use alcohol as a loss leader, which costs the State on average €21 million each year. Eliminating it would ensure higher standards in alcohol retailing by eliminating the heavily-discounted selling of branded alcohol.”
 
NOffLA, which represents 315 independent specialist off-licences operating under certified responsible retailing standards, has seen over 3,000 jobs lost since 2008. Last year, 21 independent off-licences closed their doors and ceased trading. Ten have closed this year alone.
 
“NOffLA members are currently facing immense economic pressures and this was amplified by the excise increases introduced in Budget 2013. Further tax increases will result in further job losses and business closures. It will effectively sound the death knell for this indigenous industry,” he said.
 
With tax on beer now being the fourth highest in the EU, cider the second highest, spirits the third highest and wine the highest, Jim McCabe pointed out to the Committee, “Irish taxes on alcohol are among the highest in Europe which makes it a prime target for counterfeiters in the European market. Figures from the Revenue Commissioners show that the number of seizures of counterfeit and contraband alcohol in Ireland has increased from just above 100 in 2008 to over 350 seizures in 2012”.

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