Irish alcohol excise tax debate

The Drinks Industry Group of Ireland (DIGI) is advocating for a 10% reduction in alcohol excise duty in the upcoming Budget 2027. The group argues that high taxation is placing financial pressure on the hospitality sector, particularly small and rural establishments, and that current consumption levels in Ireland have declined to align with European averages.

Research commissioned by DIGI indicates that Ireland maintains the second-highest alcohol excise tax in the EU and UK, trailing only Finland. The study highlights significant disparities in taxation compared to other nations; for instance, a pint of beer in Ireland incurs €0.55 in excise, whereas the same product costs only €0.05 in Spain or Germany. Additionally, the report notes that for a standard bottle of wine, excise and VAT combined can account for 48 per cent of the total price.

While industry representatives claim consumers pay “one of the most punitive and unjust rates of excise tax on alcohol in the European Union”, health advocates have proposed the opposite approach. Dr. Sheila Gilheany of Alcohol Action Ireland suggested increasing the duty to 15% to address the “extraordinary level of harm” caused by alcohol consumption.