Government addicted to tax on bad habits

THE European Court of Justice has dashed hopes of cheap imports of alcohol and tobacco from other EU member states. Now, as the budget approaches, we can expect calls for excise duty increases to help wean us off our multiple addictions — alcohol, tobacco and oil.

Before joining the chorus, consider the following scenario: you earned €100 overtime and had €52 extra in your pay packet at the end of the week, after deduction of tax (42%) and PRSI (6%).

You had two pints (€8) after work on Friday. On the way home you stopped for petrol (€30), a bottle of wine (€7.50) and 20 fags (€6.50).

That’s your €100 overtime fully accounted for. Between PAYE, PRSI, VAT and excise duty, the Government has taken almost €77 of it. Plus some small extra proportion of the other €23 by way of corporation tax on the profits of your pub and the garage. If you paid by laser or credit card, the Government would have already squeezed you for annual stamp duty charges of €10 or €40. Lucky we’re living in a low-tax economy.

Peter Molloy

9 Haddington Park

Glenageary

Co Dublin