Hospitality sector says Ireland's high tax on alcohol threatens recovery

Drinks lobby wants a 7.5% cut in excise saying Ireland is an outlier in Europe

DIGI said Ireland is among a group of outlier countries that includes Finland, Sweden and the UK that charge high levels of excise tax on drinks products relative to the rest of Europe.

Ireland's drinks industry is demanding a 7.5% reduction in excise tax on alcohol saying they are 'deeply concerned' about the recovery of the hospitality sector.

The Drinks Industry Group of Ireland (DIGI) published a new report today which shows that Ireland has the second-highest overall excise tax on drinks products in Europe, as well as the highest excise tax on wine, the second-highest on beer and the third-highest on spirits.

DIGI, which includes the Licensed Vintners Association, the Vintners Federation of Ireland, the Restaurants Association of Ireland, the National Off-Licence Association and the Irish Hotels Federation, is proposing a 7.5% reduction in excise tax on drinks products in Budget 2022 to boost post-Covid tourism and secure the long-term growth of the sector.

"The Irish government takes approximately a third of the price of every drink purchased by a customer in a hospitality environment," Liam Reid, Chair of DIGI said. "Money that could otherwise be invested by the business in new staff, new premises, new technology, and new products and services. This kind of growth is exactly what we need to kickstart tourism, drinks exports, and domestic spending."

DIGI said Ireland is among a group of outlier countries that includes Finland, Sweden and the UK that charge high levels of excise tax on drinks products relative to the rest of Europe.

"Ireland’s high excise tax on spirits means it is cheaper to buy a bottle of Irish whiskey in an Italian off-licence, where the charge is €2.90 per bottle, than it is here, where the tax is €11.92."

"While Government supports have kept businesses open and roofs over heads as part of the immediate-term survival, we need to now consider the long-term, sustainable growth of the industry," said Mr Reid.