Ireland drinks industry group urges 10% alcohol excise cut in Budget 2027

The Drinks Industry Group of Ireland (DIGI) has called for an immediate 10% reduction in alcohol excise duty as part of the upcoming Budget 2027. The request is based on a new report showing average adult consumption fell to 9.30 litres of pure alcohol in 2025, a 2.1% drop from the previous year and a 35.6% decline since its 2001 peak. The report notes that Irish drinking levels now align with the European average, yet the country still faces some of the highest excise rates in the EU. DIGI argues that the high tax burden is harming pubs and restaurants, especially small and rural establishments, and that a cut would ease mounting financial pressures on the hospitality sector.

Industry spokesperson Donall O'Keeffe said consumers “pay one of the most punitive and unjust rates of excise tax on alcohol in the European Union”. Meanwhile, Dr. Sheila Gilheany of Alcohol Action Ireland suggested raising the duty to 15% to reflect the “extraordinary level of harm” caused by alcohol, noting that excise revenues (€1.2 billion) are far lower than the estimated €14 billion annual cost to Ireland.