The Drinks Inndustry Group has said that the high excise tax rates levied on Ireland’s drinks and hospitality industry are totally unsustainable in a post pandemic environment, as businesses try and build back trade and recoup losses following a 16-month lockdown.
DIGI, whose members include Ibec’s Drinks Ireland, Diageo, Heineken and Irish Distillers, along with retail sector groups including the LVA, VFI, RAI, IHF and NoFFLA said that Budget 2022 must prioritise industries most impacted by the pandemic with ‘actions’ and not ‘promises’ as high tax rates will delay recovery and cost jobs.
In its 2022 pre-Budget Submission, DIGI has called for a 7.5% reduction in Ireland’s excise tax rate, beginning a programme of annual excise reductions to gradually bring Irish rates into line with the much lower EU levels. Ireland is among a group of outlier countries—Finland, Sweden, and the UK—that charge high levels of tax on drinks products relative to the rest of Europe. This is in addition to VAT charged on drinks also.