Ireland’s alcohol excise duty has sparked heated debate and controversy, given its standing as the second-highest in Europe. The detrimental impact has resulted in the closure of nearly 2,000 pubs since 2005, prompting calls for a reduction in excise duty. Wine bears the highest excise tax in the EU at 80c per glass, compared to France’s mere 1c. Beer also faces rates 11 times higher than in Germany. The burden on consumers and the drinks industry is undeniable. A reduction in excise duty is seen as a way to revitalize the industry and enhance Ireland’s appeal to tourists.
The High Cost of Alcohol in Ireland
Currently, there is a heated debate surrounding the high cost of alcohol in Ireland. Many stakeholders are calling for a reduction in excise duty to alleviate the burden on consumers and the drinks industry.
Ireland has the second-highest alcohol excise duty in Europe. The excise tax on wine is the highest, at 80c per glass. In comparison, France charges just 1c on wine. Additionally, Ireland also has the second-highest excise duty on beer. The tax on a pint in a pub is 11 times higher compared to Germany.
The high levels of alcohol excise in Ireland compared to other EU countries place a burden on the Irish drinks industry and consumers. This burden has resulted in the closure of many pubs.
A reduction in excise duty would not only benefit the Irish drinks industry and consumers but also improve Ireland’s reputation among tourists.
Impact on the Irish Drinks Industry
The high levels of alcohol excise in Ireland compared to other EU countries have had a significant impact on the Irish drinks industry, causing the closure of numerous pubs and placing a burden on both businesses and consumers.
The Irish government receives around 30-35% of the retail price of every drink sold in Ireland.
Almost 2,000 pubs in Ireland have closed since 2005, according to the Drinks Industry Group of Ireland (DIGI) lobby group.
Irish consumers pay an additional 23% VAT on alcohol purchases.
Publicans are seeking a reduction of 15% in excise duty over two years.
Bringing excise duty in Ireland more in line with other EU countries would benefit the Irish drinks industry and consumers.
The calls for a reduction in excise duty in Ireland are driven by the need to support the hospitality sector and improve Ireland’s reputation among tourists. Currently, Ireland has one of the highest rates of excise duty in Europe, which puts the industry at a disadvantage. A reduction in excise duty would not only alleviate the burden on businesses but also make alcoholic beverages more affordable for consumers.
Calls for Reduction in Excise Duty
The ongoing debate surrounding excise duty reduction in Ireland has gained momentum as publicans and industry groups continue to advocate for a more favorable business environment. Currently, Ireland has the second-highest alcohol excise duty in Europe, placing a burden on the Irish drinks industry and consumers. The Drinks Industry Group of Ireland (DIGI) lobby group has called for a reduction in excise duty to improve Ireland’s reputation among tourists and support the struggling hospitality sector. Publicans are seeking a 15% reduction in excise duty over two years, which would provide much-needed relief for businesses. Bringing excise duty in line with other EU countries would benefit the Irish drinks industry and consumers. The following table highlights the current excise duty rates in other European countries:
| Country | Excise Duty Rate |
|---|---|
| Finland | Highest |
| UK | Third highest |
| Spain | Lowest |
| Romania | Lowest |
| Bulgaria | Lowest |
(Source: Own research, based on available data)
Reducing excise duty in Ireland would not only support the drinks industry but also improve Ireland’s competitiveness and attractiveness to tourists.
Comparing Ireland’s Excise Duty to Other European Countries
Ireland’s excise duty on alcohol is significantly higher compared to other European countries, posing challenges for the Irish drinks industry and consumers alike.
- Ireland has the second-highest alcohol excise duty in Europe.
- The excise tax on wine in Ireland is the highest, with a glass incurring a cost of 80c.
- 15 EU countries do not charge any excise tax on wine, including Germany, Italy, Portugal, and Spain.
- Ireland also has the second highest excise duty on beer, with the tax on a pint in a pub being 11 times higher compared to Germany.
- The excise duty on spirits in Ireland is the third-highest compared to other EU countries and the UK.
The high levels of alcohol excise in Ireland place a burden on the Irish drinks industry and consumers. The Drinks Industry Group of Ireland (DIGI) lobby group has called on the government to reduce excise duty to improve Ireland’s reputation among tourists. Publicans are seeking a reduction in excise duty to provide a much-needed break for businesses.
Bringing excise duty in Ireland more in line with other EU countries would benefit the Irish drinks industry and consumers.
Controversy Surrounding Ireland’s Alcohol Excise Duty
Amidst the ongoing debate over Ireland’s alcohol excise duty, stakeholders are divided on the potential effects of reducing the tax.
The Drinks Industry Group of Ireland (DIGI) lobby group argues that a reduction in excise duty would benefit the Irish drinks industry and consumers. They claim that the high levels of excise duty in Ireland compared to other EU countries place a burden on the industry and have contributed to the closure of almost 2,000 pubs since 2005.
DIGI is calling on the government to reduce excise duty to improve Ireland’s reputation among tourists.
On the other hand, opponents of reducing the tax argue that it would lead to increased alcohol consumption and related social issues. They also highlight the revenue loss for the government, as it currently receives around 30-35% of the retail price of every drink sold in Ireland.
The outcome of this ongoing debate remains uncertain.
Conclusion
In conclusion, Ireland’s significantly high alcohol excise duty compared to other European Union countries has had a detrimental impact on both consumers and businesses in the country.
The excessively high rates have resulted in the closure of numerous pubs and have burdened the drinks industry.
With calls for a reduction in excise duty, Ireland must address this issue to alleviate the tax burden and improve its reputation among tourists.
