Tax hike threat to off-licences

Nearly two-thirds of independent off-licences will be at risk of closure if excise duty is increased again later this year, according to a members’ survey.

Budget 2015 isn’t until October 14, but the National Off Licences Association (Noffla) isn’t taking any chances and has already launched its pre-budget submission.

Meanwhile, the Department of Finance is urgently trying to find a replacement for exiting secretary general John Moran before July when it will seriously knuckle down to pre-budget planning.

According to Noffla, the sector is being strangled by excise duties, with over half of independent off-licences saying they would take on extra staff if the taxes imposed in 2013 and 2014 were reversed.

On the contrary, they say that if excise duties are further increased, they will have to cut staff.

The last two budgets led to a 43% increase in excise duty on beer and cider, a 33% increase on spirits and a 56% increase on wine.

Ireland currently has the highest tax on wine in the EU, the second highest on cider and third highest on spirits and beer.

The off-licences once again called for below-cost selling of alcohol to be banned.

A survey of Noffla members shows that almost 60% of independent off-licences would be at risk of closure if excise duty on alcohol is again increased in Budget 2015.

In its pre-budget submission, Noffla called on the Government to reverse the excise duty increases introduced in Budget 2013 and 2014. It says that up to 3,000 jobs have been lost in the sector in the past six years.

It said only 7% of members have managed to maintain their pre-Budget 2014 sales volumes.

Over one-third admitted they have had to let staff go due to increases in excise duty.

Noffla chairwoman Evelyn Jones said: “We are calling on the Government to reintroduce a ban on below-cost selling of alcohol and provide security to the 92,000 jobs associated with the alcohol industry while ensuring a more effective means of reducing alcohol consumption.”