The Government should cut excise duty on alcohol by 10% to bring Ireland closer to the “European norm”, the Drinks Industry Group of Ireland has argued. 

According to a study released in 2023, excise duty in Ireland was the second highest in the European Union - beaten only by Finland. 

It means, for every euro a person spends on drink in a pub or restaurant, between 27 and 29 cents of that is sent onto Revenue. 

On Newstalk Breakfast, Drinks Industry Group of Ireland spokesperson Donall O’Keefe described the Government’s tax regime as “enormously penal”. 

“We have an industry under enormous cost pressures - 120 pubs a year closing their doors every year for the last 20 years,” he said. 

“We see ongoing closures in the restaurant sector, cost pressures are enormous and we’re working in an environment where alcohol consumption has fallen slowly and steadily for the last 25 years.” 

Mr O’Keefe added that alcohol consumption in Ireland has been falling “slowly and steadily” and called for a 10% cut in excise duty to bring Ireland closer to the “European norm”. 

A couple raise their pints. Picture by: Dinendra Haria / SOPA Images/Sipa USA.

Also on the programme, Alcohol Action Ireland spokesperson Dr Sheila Gilheany said a cut in excise duty was the last policy the Government should consider. 

“Excise duties haven’t changed in over 11 years and we would certainly be calling for an increase in them, just simply to be able to keep in line with inflation,” she said. 

“Alcohol puts a massive burden on the State; when Donall talks about the tax contribution that’s coming from excise duties, that makes up less than a tenth of the total cost to Ireland. 

“Every drink of alcohol in Ireland costs €3.60 at least; that would be healthcare costs, justice costs and loss of workplace productivity. 

“It’s an underestimate because there’s many other costs as well - for example, the harms to others; for children who are growing up with alcohol harm in the home, there’s a devastating cost for them personally.” 

An empty round of pints. Photo: Sam Boal/Rollingews.ie

Instead, Dr Gilheany urged the Government to ensure excise duties “actually reflect the cost and harm to the country”. 

“Tobacco taxation duties have increased regularly over the last 11 years but there has been no change in alcohol duties,” she argued. 

“Despite this massive cost that alcohol has to Ireland.”

Main image: Pint drinkers clink glasses together. Picture by: Alamy.com.