Fresh Mayo call for reducing Ireland's excise tax on drinks

The Irish Government imposes the second-highest excise tax on drinks in the EU and UK, significantly impacting Mayo's drinks and hospitality sector, a new report reveals.

A recent survey by Core Research for the Drinks Industry Group of Ireland (DIGI) highlights that 70% of Irish people frequent pubs for socialising, with over half believing the excise tax on drinks should be lowered. T

he report, authored by economist Anthony Foley, indicates that excise taxes in Ireland are disproportionately high compared to other EU countries. For instance, the excise tax on a bottle of Irish whiskey in Ireland is more than four times higher than in Spain.

Despite the central role pubs play in Irish social life, the government levies excise tax rates on Irish beer and spirits that are significantly higher than those in Germany and other European countries. Additionally, while 15 EU nations impose no excise tax on wine, Ireland charges 80 cents per glass.

DIGI is calling for a 15% reduction in excise tax over two years to alleviate the financial burden on the drinks and hospitality industry. The reduction aims to align Ireland's tax rates more closely with those of the EU and UK, enhancing competitiveness and supporting business sustainability.

Kathryn D’Arcy, Chair of DIGI and Communications Director at Irish Distillers, emphasised the need for policy reform to reflect the value of the Irish hospitality industry, which is crucial for tourism and local communities. A tax cut, she argues, would provide immediate relief to thousands of businesses struggling with high operational costs.

With substantial consumer support, as evidenced by 53% of survey respondents advocating for government support to pubs and restaurants, there is growing pressure on the government to revise its excise tax policies in the upcoming budget.