Irish hold off on alcohol tax hikes

The Irish drinks industry has responded favourably to the government’s decision to freeze alcohol duty under the new budget but some say they could have gone further.

The Irish parliamentary building, the Dail, in Dublin (Photo: Wiki)

The Irish minister for finance, Michael Noonan, made the announcement yesterday to a mainly positive reception from the Vintners Federation of Ireland (VFI) who said the benefits would be felt widely.

“Today’s decision is also welcome news for Irish consumers who as a result will not see their pockets further lightened. This is crucial at a time when we are seeing a tentative increase in consumer confidence,” said a spokesman from the VFI.

“We also feel this decision is recognition of the contribution of the Irish pub which accounts for over 50,000 jobs and contributes significantly to the exchequer,” he said.

The VFI said that the decision not to impose further excise increases comes at a time when the pub trade continues to experience significant challenges.

Furthermore, they insisted that it was a positive development that the Government is not making Ireland more expensive for tourists at a time when the tourism industry also faces a period of recovery.

But the VFI also said the action didn’t go far enough: “While we are pleased and relieved that another increase has been avoided, we would still view today’s decision as a missed opportunity. The Government had a chance to reverse this position by reducing levels of excise but has decided not to take it.”

They insisted that excise is a “tax on employment, a tax on consumers and a tax on tourism”.

And Kathryn D’Arcy, Director of Alcohol Beverage Federation of Ireland showed her support for the move: “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.”