Paying the price

NOW that Eddie Hobbs has set the whole nation a twitter about “rip-off Ireland”, everyone is ready to pounce on anyone perceived to be overcharging.

Food prices, restaurant prices and the price of the pint are compared across Europe, Ireland rarely comes out best. However, the ‘bargain police’ rarely register the fact that Ireland has one of the highest basic wages in Europe.

We also have some of the highest indirect taxes on food and wine in the EU. Ireland applies a VAT rate of 21%, and excise duty, to sparkling and still wines. The figures for VAT in Spain, Italy and Portugal are 16%, 12% and 12% respectively on sparkling wine and 16%, 20% and 12% on still wine. The excise duty on a standard bottle of still wine in Ireland is €2.05, €1.80 in Britain, €0.03 in France and nil in Italy, Spain, Greece and Portugal. The excise duty on sparkling wine in Ireland is €4.10, €2.57 in Britain, €0.06 in France and, again, nil in Italy, Spain, Greece and Portugal.