Irish drinks lobby Drinks Industry Group of Ireland have called for a 15% reduction of the alcohol excise in order to foster economic growth and encourage tourism.
DIGI's pre-budget submission to the government makes the argument that the current level of tax on alcohol penalises the "vital drinks and hospitality industry."
A statement from the group says that a reduction in the price of alcohol would increase tourism from Britain in particular, as it would counter-balance the negative effect of Brexit on British spend in Ireland. DIGI characterise the excise on alcohol as a 'direct tourism tax'.
DIGI further contend that by allowing the drinks industry to thrive, more jobs are created in Ireland: "Government is urged to show support for the business strength and capability of Irish drinks manufacturers by reducing excise and creating a solid domestic market, which will in turn assist in the drinks export drive."
Maggie Timoney, DIGI Chairperson and Managing Director at HEINEKEN Ireland said:
“An alcohol excise reduction is a vital response to the new and immediate effect of the uncertainty caused by Brexit. Excise increases are detrimental to the Irish drinks and hospitality industry and the 200,000 jobs it supports. Ireland has the second highest excise on alcohol in the EU.
Alcohol tax is a regressive and inequitable tax and ours is very high by EU standards. We believe that the particularly high Irish excise tax is detrimental to economic growth and economic activity. We would urge the Government to reduce excise by 15% in October’s Budget.”
