
Irish Love Pubs and Restaurants
According to a survey conducted last week among 1,000 Irish consumers by Core Research on behalf of the Drinks Industry Group of Ireland, 70% of people enjoy going to the pub to socialise, with 82% citing the restaurant as an enjoyable way to get out and meet people.
Almost 70% of Irish people visit our traditional pubs and restaurants to catch up with family and friends, over half (58%) to celebrate family occasions and one in four (27%) go to the pub to watch sport.
DIGI says that despite public support for the sector, the industry and Irish consumers are levied with the second highest excise tax rate in all of Europe and the UK, behind only Finland, according to a new report on comparative excise tax rates in Ireland, the EU and UK commissioned by DIGI and authored by Economist and Associate Professor Emeritus at DCU Anthony Foley.
The report shows that Ireland currently has the second highest excise tax on wine, the third highest on beer and the third highest on spirits. For example, a glass of wine in Ireland currently incurs an excise tax of 80 cent compared to 1 cent in France, while 15 EU countries pay no excise on wine whatsoever.
On a bottle of Irish-produced whiskey, excise tax is over four times higher in Ireland than in Spain, with Irish consumers paying almost €12 compared to their Spanish counterparts who pay only €2.69 in tax.
On top of this, consumers also pay an additional 23% VAT on alcohol purchases, meaning the Government is getting a total of 30-35% of the retail price of every drink sold.
As happens every year, Ireland’s drinks and hospitality sector is urging the Government to use the upcoming budget to begin the process of reducing excise tax in Ireland and bringing it in line with other EU countries.
Irish consumers are also keen to see this much-loved hospitality industry supported. According to the Core research, 53% of people agree the Government should offer support to pubs and restaurants to sustain business and enable growth, while 51% agree excise tax on drinks should be reduced.
The industry says a reduction in excise duty of 15% over two years will go a long way to assist in ensuring the sustainability and future of “these much-used and much-loved hospitality venues”.
Chair of DIGI and Communications and Corporate Affairs Director at Irish Distillers, Kathryn D’Arcy (pictured) said:
“The continued high cost of doing business in Ireland has profoundly impacted Irish businesses in recent years. The drinks and hospitality sector has been particularly affected by the lingering effects of the pandemic, coupled with inflation, an energy and cost-of-living crisis, and a cripplingly high-cost base.”