Irish excise on alcohol second highest in Europe - study

Ireland ranks second in Europe for alcohol excise duties, according to research from Dublin City University economist Anthony Foley. The study, commissioned by the Drinks Industry Group of Ireland (DIGI), found that only Finland has higher alcohol excise rates. When examining specific types of alcohol, Ireland's wine excise duty ranks second highest in the EU and UK, behind Finland.

Beer and spirits also face higher excise duties in Ireland, third highest only to Finland and Sweden. A pint of beer in an Irish pub carries an excise duty of €0.55, significantly higher than €0.05 in Spain and Germany. Similarly, a 70cl bottle of whiskey in Ireland is subject to a €11.92 excise duty, compared to €2.69 in Spain and €3.65 in Germany.

Notably, 14 European countries impose no excise on wine, including Spain, Portugal, Italy, Germany, and Greece. France levies a mere €0.01 on a standard glass of wine. Excise duties account for €3.19 of the €11 price of a standard bottle of wine purchased off-license in Ireland. The study aims to provide an objective comparison of Ireland's excise rates with those of other European countries.

The findings clearly demonstrate that Ireland's alcohol excise tax is notably high compared to the majority of European nations. DIGI is advocating for a 10% reduction in excise rates in the upcoming budget to bolster the sustainability of pubs. Digby O Keeffe, DIGI Secretary, lamented that despite numerous calls for a 10% reduction in excise, the government has failed to act, and even increased excise by 15% in a previous budget.