Ireland holds fire on alcohol tax hikes

The drinks industry breathed a sigh of relief yesterday after the Irish government decided not to increase excise on alcohol in its 2015 Budget.

Two drinks groups have welcomed the Irish government’s decision not to increase excise on alcohol

The news, announced yesterday by minister for finance Michael Noonan, has been welcomed by the Drinks Industry Group of Ireland (DIGI) stating the decision signified recognition of the “significant role” the sector plays in generating jobs, supporting the economy and driving tourism.

“The drinks industry was hit with excise duty increases in Budget 2013 and 2013, so we welcome the government’s decision not to increase excise on alcohol today and to increase excise relief for microbreweries,” said Peter O’Brien, chairman of DIGI and European corporate relations director for Diageo.

The Alcohol Beverage Federation of Ireland (ABFI) also gladly received the news, however both groups called for the government to go one step further and reverse the excise increase on alcohol from previous years, which would “promote job creation”.

“Going forwards we believe that the government should use next year’s Budget as an opportunity to reverse excise on alcohol in order to promote job creation,” said Kathryn D’Arcy, director of ABFI.

“Excise on alcohol in Ireland is already amongst the highest in Europe and the government must consider reversing it if they are serious about making Ireland the best little country in the world in which to do business.”