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Irish Mirror
Irish Mirror
National
Ferghal Blaney & Laura Colgan

Government could cut excise duty of beer and wine to help cost of living crisis

THE Government may slash duty on drink to bring down the price of beer to help the nation through the cost of living crisis.

It comes as experts warned the heatwave is adding to Irish household costs through higher food prices, and the extra electricity used for showers, air con and refrigeration.

The plan is one of a number of options in the Tax Strategy Report, prepared by economists at the Department of Finance for minister Paschal Donohoe.

READ MORE: New 30% tax rate could benefit one million Irish workers if introduced

Publican Hugh Hourican with a pint of Guinness & a receipt at The Boars Head Pub on Capel Street, Dublin (Collins)

It calculates that a cut of five cent on a bottle of wine would cost the Exchequer just €3.2million. The same reduction on a pint of cider would cost only €4.2million and slashing excise duty on a pint of beer by one cent would reduce the tax take by €6.2million.

Excise duty in Ireland is already among the highest in Europe. For example, we pay €12 excise on a regular bottle of whiskey, compared to just €5 that the drinking punters pay in our nearest European neighbour, France. And the duty on a bottle of wine is around €3 here while 14 countries in Europe charge no excise.

Other options being looked at include changing tax rates to give a million taxpayers up to €1,000 back, and increasing core social welfare payments. Yesterday Mr Donohoe didn’t rule out any of the choices presented to him.

Minister for Finance Paschal Donohoe (Gareth Chaney/Collins)

He said: “The papers present the options we will look at when preparing the budget next month, but they are not yet decisions.”

Meanwhile, lobby group Drinks Industry Group of Ireland claimed the government can protect tens of thousands of hospitality and drinks sector jobs with a 7.5% reduction on excise tax on alcohol products.

Minister for Finance Paschal Donohoe (Gareth Chaney/Collins)

Chair Kathryn D’Arcy said: “If you want to promote Ireland as a great place to visit, then we must ensure we are competitive for those who visit the country. Reducing excise tax can be introduced overnight with an immediate impact.”

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