Ireland has the highest wine excise in the European Union, according to a new report.

The report, by DCU Economist Anthony Foley and published by the Drinks Industry Group of Ireland (DIGI), also found Ireland has the second highest beer excise, and third highest spirits excise in the bloc.

This ranks Ireland alongside Finland, Sweden and UK.

DIGI says Ireland ranks second in the EU's 'Big 4' for overall alcohol excise tax.

This is EU member states with "disproportionately high" alcohol excise tax compared to other countries.

The country with the fifth highest alcohol excise tax, Estonia, has a rate almost 50% lower than Ireland's and 33% lower than the UK.

In addition to excise tax, VAT is also charged on alcohol at a rate of 23% - VAT is charged on the price plus excise.

DIGI says the Irish Government charges 80 cents on every 187ml glass of wine - while France, in comparison, charges just one cent.

Fourteen EU member states, including Italy, Germany and Portugal, charge no excise on wine whatsoever.

Drinks with alcohol at a party | Image: Frank May/DPA/PA Images

While a pint of lager served in a German pub comes with an excise levy of 5 cents, the same drink in Ireland has a levy of 55 cents.

Almost €12 on a 70cl bottle of whiskey bought in an Irish off-licence goes straight to the Exchequer.

Excise on the same bottle of spirits bought in a French off-licence is less than €5, and in an Italian off-licence less than €3.

Ireland's levy on cider is also double that of the UK - €94.46 vs €45.51 per hectolitre of product.

Ahead of Budget 2019, DIGI is calling on the Government to reduce Ireland's alcohol excise tax.

€2.3bn in yearly revenue

Its chairperson, Rosemary Garth, says: "The drinks and hospitality industry is one of Ireland's most important.

"Together, manufacturers, distillers, brewers, pubs, off-licences, restaurants, hotels the length and breadth of the country generate €2.3bn in revenue for the Exchequer every year.

"However, as the market becomes more competitive, and events like Brexit exert pressure and pile on risk, that income is no longer guaranteed.

"While Irish drinks businesses are excellent innovators, there is only so much they can achieve while shouldering the second highest excise tax in Europe.

"A smaller tax would allow businesses to spend more money on expanding into new markets, developing new goods and services, refurbishing and expanding premises, and creating new jobs.

"Having fewer obstacles in the way of growth and innovation is especially important if British tourism and patronage slows in the event of a no deal Brexit."