Calls for a cut in taxes on alcohol could save “thousands of jobs” according to the drinks industry.
The lobbyists for the sector are calling for finance minister Paschal Donohoe to consider relaxing taxes on booze to help with the cost of living crisis.
In its 2023 pre-Budget Submission, DIGI (Drinks Industry Group Ireland) has called for a 7.5% reduction in Ireland’s excise tax rate to begin a programme of annual excise reductions aimed at gradually bringing Irish rates into line with the much lower levels in Europe.
Ireland has among the highest levels of excise on booze in Europe.
This is in addition to VAT charged on drinks.
DIGI Chair and Irish Distillers’ Communications and Corporate Affairs Director, Kathryn D’Arcy, said: “When you combine this analysis with recent findings showing a decline in the number of pubs of almost 2,000 since 2005, it points to the need for meaningful policy measures to weather the immediate period.
“A perfect storm exists whereby the difficult operating environment, coupled with lower than anticipated economic growth and higher interest rates, means the business environment in 2022 and 2023 will be much more difficult than expected.
“We’re seeking a reduction in Ireland’s high level of excise tax, to bring us in line with EU norms.
“The effect of this would be immediately felt.
“It would reduce costs for thousands of businesses throughout the country overnight.
“It’s a policy measure that is in the power of Government to implement easily and would signal a strong statement of support to the sector, providing more certainty in terms of business costs at a very uncertain time.”
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