‘Don’t cut taxes on alcohol in budget’

The Government should resist pressure from the drinks industry to cut taxes on alcohol in the forthcoming budget, a campaign group has said.

And ministers could solve the financial hole left by a ban on alcohol sports sponsorship by placing a levy on the drinks industry.

Alcohol Action Ireland estimates that a levy of 1c on a standard drink would generate €30m annually, which it said was more than the industry spends on sports sponsorship every year. “We have seen in recent years that increases in excise duty have reduced alcohol consumption and generated significant additional revenue for the exchequer, while cuts in excise duty have had the opposite effect,” said Suzanne Costello, AAI chief executive in its pre-budget submission.