NOffLA calls for reduction of excise on beer and wine

NOffLA's members say a reduction in tax would help create jobs in their sector
NOffLA's members say a reduction in tax would help create jobs in their sector

NOffLA has published its pre-budget submission for 2017, highlighting research which shows the potential benefits of a reduction in tax on alcohol.

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14 July 2016 | 0

As the end of summer approaches, attentions will turn to the looming Bidget 2017, for which various associations have begun publishing their submissions to government, containing recommendations to boost their respective industries.

NOffLA, the National Off-License Association which represents independent beer, wine and spirit retailers across Ireland, has published its submission for Budget 2017 in which it recommends a reduction in tax of 10c on spirits/beer/cider and 50c on wine. The Association says this would lead to 54% of businesses taking on more staff, while 62% would be prepared to offer its staff pay increases.

As part of the submission, NOffLA has also released the results of its 2016 member’s survey which shows that 55% of off-licences across Ireland will struggle to remain open if the current level of excise is increased in Budget 2017, jeopardising thousands of jobs. If however the current level of excise is reduced, 81% of respondents would re-invest in their business by increasing product quality and range.

The independent off-licence industry has lost 3,000 jobs since 2008, the report said, and that it is vital the government works to protect the remaining 5,900.

Evelyn Jones, Government Affairs Director NOffLA said;

“NOffLA members are significant local employers based in communities all around the country,” said Evelyn Jones, NOffLA’s government affairs director, “and as such we have a clear view of the economic reality for Irish SMEs. While the economy is improving generally, as with previous years our Members Survey has shown that the recovery is not being felt by all.

“We are calling on the new Government to take positive and decisive action that will safeguard jobs, encourage local investment and ultimately contribute to the development of local communities. A reversal of the punitive Budget 2014 excise increase on alcohol combined with a reduction of the tax on wine, which is significantly higher than that of cider and beer, would facilitate business and indeed consumer choice.”

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