Revenue’s excise take on alcohol falls

SHOPPERS heading North for wine and spirits means the Revenue’s excise take on alcohol is down more than €31 million this year.

The Alcohol Beverage Federation of Ireland (ABFI) said the 8% drop in excise receipts in the year to the end of May 2009 highlights the gloomy times for the industry.

The ABFI blamed the exodus of shoppers to the North and the general economic downturn as the reasons for the drop.

The figures show that in May excise receipts from wine are up a massive 21% but ABFI director Rosemary Garth said this is not a fair reflection on sales figures as the Government increased the excise paid on wine recently.

She said wine sales in Ireland are terrible, as are sales of spirits. Cider sales have picked up slightly this summer and excise receipts from cider was up 2.2% in May and almost 12% in April. Excise from beer was also up almost 4% in May.

“It is a very difficult environment for the drinks industry but everybody is trying to make sure there’s value out there,” said Ms Garth. Excise duty is payable to Revenue at the time of production or importation into Ireland.

However, if the product is held in a bonded warehouse, payment of the duty is suspended until it isreleased for consumption onto the home market.

A bonded warehouse is a premises approved by the Revenue where excisable products can be produced, processed, held, received or dispatched under a duty suspension arrangement by an authorised warehouse -keeper in the course of business.

Excise is applied to the “old reliables” including cigarettes, alcohol and petrol.