Mircrobrewers cautiously raise glass to tax relief

"A win for the craft brewing industry but not the slam-dunk we would have liked."

That appears to be the prevailing view of the supporters and customers of Ireland’s growing micro-brewery sector in response to the extension of tax relief to the sector announced by Finance Minister Michael Noonan.

The relief that reduces the standard rate of Alcohol Products Tax by 50% on beers produced in micro-breweries which produce not more than 20,000 hectolitres per annum is being extended to apply to micro- breweries which produce not more than 30,000 hectolitres per annum.

“Microbreweries in Ireland have been a success story in recent years,” said the finance minister.

“They have expanded their market share, provided employment throughout the country, and are now making inroads into markets abroad. To further assist the development of this sector and not to stand in the way of growth, I am increasing the annual excise relief production ceiling for micro breweries from 20,000 to 30,000 hectolitres.”

Members of Beoir, the online support group for microbreweries, gave a broad welcome to the excise changes in yesterday’s budget, anticipating that it would help to boost local producers of beer.

However, some members lamented the fact that Mr Noonan did not appear to take into account the needs of homegrown cider producers.

The Drinks Industry Group of Ireland welcomed the increase in excise relief for microbreweries, saying that this demonstrated a recognition of the significant role the sector has to play in creating jobs, supporting our economy, and driving tourism.

However, the representative group for the drinks industry in Ireland has called on the Government to reverse the recent excise increases on alcohol in next year’s budget in order to create jobs and drive further growth.

The decision not to increase excise duty on alcohol was also welcomed by the Alcohol Beverage Federation of Ireland.

ABFI, which represents Irish beer, cider, whiskey, wine, and spirits suppliers and manufacturers, said that the decision would have a significant positive knock-on effect on the economy — giving a boost to the fragile economic growth in the hospitality sector.

“Today’s decision not to increase alcohol excise will support the sector to grow and develop in a sustainable manner, creating competitive conditions in the domestic market,” said Kathryn D’Arcy, director of ABFI.