The Vintners Federation of Ireland has called for the Government to cut excise duty on alcohol in order to help small businesses “under extreme cost pressure”. 

A study by DCU, commissioned by the Drinks Industry Group of Ireland (DIGI), found that Ireland has the second highest excise duty on alcohol in Europe.  

While Irish beer drinks pay excise duty of €0.55 on a pint, in Germany and Spain, pubgoers only pay €0.05. 

On The Claire Byrne Show, Vintners Federation of Ireland CEO Donal O'Keefe said Irish consumers deserve better. 

“Critically, Irish alcohol consumption has fallen very continuously and very sharply over the last 25 years,” he said. 

“We're now right in the middle of the European average in terms of per capita consumption. 

“Our excises are off the chart compared to our European neighbours.

“The pub trade is under enormous pressure; small family businesses right across the country under extreme cost pressure and we're calling on the Government to support pubs, to support the drinks industry by cutting the highest excises in Europe by just 10%.”

Pints of Guinness served at a pub in Dublin. Picture by: Alamy.com.

Also on the programme, Sheila Gilhooley of Alcohol Action Ireland said excise duty does not cover the huge cost of drink to Irish society and urged the Government to increase it. 

“The reason that we want to see that increase is because there has been no change in excise duties since 2014,” she said. 

“While it is true that there has been some decrease in alcohol consumption, which is very welcome, we're still drinking at very high levels. 

“In particular, our binge drinking levels are exceptionally high; we have the second highest level of binge drinking across OECD countries.” 

Ms Gilhooley described calls to cut excise duty as “very self-serving”, adding the tax is “there for a reason”. 

“This is a product that causes an enormous amount of harm,” she said. 

“It kills four people every day, it costs the health service at least 11% of its budget.

“If you look at things like workplace productivity, justice costs, it actually costs about €14 billion annually. 

“Yet, excise duties just bring in a tiny fraction of that, about €1.2 billion.”

Main image: Pints outside a County Clare pub. Picture by: Paul Quayle/Alamy.