Pubs want the government to cut tax on drink in the upcoming Budget
They feel that Brexit and high taxes have created the "perfect storm".
With the Budget set to be announced next week, the Drinks Industry Group of Ireland (DIGI) has called for the reduction of excise duty on beer. The group made up of restaurants, hotels, pubs, independent off-licences, and suppliers, has said that the unfair excise rate is a tax on jobs, on tourism, and on consumers.
With the declining value of sterling relative to other currencies, the DIGI feel that the industry is facing a “Perfect Storm”.
Donall O'Keeffe, Secretary of the Drinks Industry Group, says that: “the combination of high excise and the uncertainty over Brexit, has caused the “Perfect Storm” for the pub trade and the tourism market in Ireland. Excise is a tax on jobs, it is a tax on tourism and it is a tax on Irish consumers. Excise increases in Budget 2012 and 2013 were applied at a time of economic crisis. Now that we are moving towards recovery, we need to take this heavy burden off consumers, tourists, businesses and employees across the drinks and hospitality sector which currently employs over 200,000 people, in every corner of Ireland.”
Regarding the potential impact that Brexit could have on the Irish pub trade, he had this to say "we firmly believe that the Brexit Vote has resulted in an even stronger case for a significant reduction in alcohol excise. Budget 2017 should compensate for the negative effect of Brexit, such as exchange rate uncertainty, impacts of a new “border” and the impacts that Brexit might have on British tourists and their spend in Ireland.”