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22/11/2004
€2bn cheers from State as drinkers top Euro tax table
IRISH consumers pay the highest rate of taxes on wine and beer in the EU and the second highest rate on spirits, a survey published this week will reveal.
The total tax take to the exchequer from sales of alcohol is €2bn, with Irish consumers paying far more for a bottle of wine, beer or spirits than our EU neighbours.
The survey, carried out by Anthony Foley from the Dublin City University Business School on behalf of the Drinks Industry Groups of Ireland, will outline the annual benefit to the economy from the sector when published next Thursday.
"It will highlight the fact that over €2bn is paid to the exchequer every year. It's a very heavily taxed industry, and it's a cause of concern for the drinks industry because they're so unfair compared to the rest of the EU," an industry spokesman said yesterday.
"The recent strategic task force on alcohol recommended further (taxation) increases which were widely criticised. The industry is very severely taxed, there's ten of thousands of jobs in the industry which are vital to the country in terms of supporting the tourism industry and so on," he said.
Our high prices could also have repercussions for the tourism industry with visitors less likely to go out for a couple of drinks because of high prices.
Last month employers group IBEC asked that excise duty on alcohol be curbed in a pre-budget submission to Minister for Finance Brian Cowen.
Figures from the Wine Development Board of Ireland show that €2.05 is paid in taxes on an average bottle of table wine here compared to €1.83 in the UK, the closest comparison. In Denmark 71c is paid; the French pay just 3c while in Italy, Spain, Germany and Greece no duties are paid.
Irish consumers pay €4.10 in taxes on a bottle of sparkling wine, compared to €2.47 in the UK; €1.06 in Denmark; 6c in France and nothing in Italy, Spain and Greece.
Last summer the European Commission recommended that the high Irish tax rates on alcohol should be dropped towards a harmonised EU average, warning that smuggling and fraud would not be curbed until the massive difference in the price of wine, beer and spirits across Europe came closer together.
Irish Independent
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