Ireland imposes second-highest alcohol excise tax in EU

Research commissioned by the Drinks Industry Group of Ireland (DIGI) indicates that Ireland imposes the second-highest alcohol excise tax in the EU and UK, trailing only Finland.

The study, conducted by DCU economist Anthony Foley, highlights significant disparities in taxation across categories. Ireland ranks second in excise on wine and third for beer and spirits. For example, a pint of beer in an Irish pub incurs €0.55 in excise, compared to just €0.05 in Spain and Germany. Similarly, a 70cl bottle of whiskey carries an €11.92 excise tax, significantly higher than the €2.69 in Spain or €3.65 in Germany.

On wine, the tax burden remains high; for a standard €11 bottle purchased in an off-licence, excise and VAT combined account for 48 per cent of the total price. The drinks industry group suggests these high rates contribute to recent pub closures and is calling for a 10 per cent reduction in excise in the upcoming budget. DIGI secretary Donall O’Keeffe noted that while high taxes were once justified by high consumption levels, Irish consumption has since dropped to European averages.