Irish pay second highest excise tax on alcohol in EU, claims report
Hannah Kate Costello
Irish consumers are paying the second-highest excise duty on alcohol in Europe, with only Finland charging its citizens higher rates, according to research commissioned by the drinks industry.
The research said that the combined Irish excise tax on beer, spirits and wine is the second-highest in the EU and the UK.
By category, excise on wine in Ireland is the second-highest in the EU and the UK, while excise on beer and spirits is the third-highest.
It said a pint of beer purchased in a pub here incurs excise of €0.55, compared to €0.05 in Spain and Germany.
It also cited a 70cl bottle of whiskey, which is levied with €11.92 excise here, compared to €2.69 excise in Spain and €3.65 in Germany.
The research carried out by DCU economist Anthony Foley and commissioned by the Drinks Industry Group of Ireland (DIGI) points to a similar trend across wine, with excise making up €3.19 of the €11 cost of a standard bottle of wine purchased in an off-licence in Ireland.
With VAT of €2.06 included, this means 48 per cent (€5.25) of the overall purchase price goes directly to the Government. The tax rate on an €8.50 glass of wine in a bar or restaurant is lower but still makes up €2.39 of the purchase price, when excise of €0.80 and VAT of €1.59 are combined.
It said that in comparison, 14 European countries don’t charge any excise at all on wine, including Spain, Portugal, Italy, Germany and Greece. France charges €0.01 on a standard glass of wine.
The drinks industry lobby group claims the high excise rate is one of the main factors behind the high rate of pub closures in Ireland in recent years and is calling for a 10 per cent reduction in excise in the upcoming budget.
DIGI secretary Donall O’Keeffe said: "While there may have been some argument for this when Irish alcohol consumption was among the highest in Europe, onsumption has dropped to average European levels in recent years.
“The Government needs to wake up to the reality that super high taxes on alcohol are killing our pub industry. Irish pubs are celebrated around the world and are often the only community hub in isolated communities, yet the Government seems to be content to tax them out of existence."
