Tax hike hits whiskey production

IRISH whiskey production is to be scaled down because of the negative impact of the 42% increase in excise duty imposed by Finance Minister Charlie McCreevy in December’s Budget.

Sales of distilled spirits have fallen by 21% in volume in the six months since December according to Irish Distillers Limited (IDL) which runs the country’s biggest distillers in Midleton, Co Cork.

Sales of ready-to-drink (RTD) products, where Smirnoff Ice is the market leader, are down 38%.