Off- licence body in call for excise rate reduction

OFF- LICENSES in Ireland have warned that a failure to reduce excise on alcohol in the wake of Brexit will increase cross border shopping trips.

Since 2008, the off- licence sector has lost 3,000 jobs. As such, the National Off- Licence Association ( NOffLA) is urging the Government to protect the remaining 5,900 off- licence jobs. NOffLA has called on the Government to:

- Reduce excise duty on alcohol by 15% ( 10c on spirits/ beer/ cider and 50c on a bottle of wine) to support Ireland’s already struggling regional and local economies by increasing rural employment, as well as securing the livelihoods of communities in border regions, particularly considering Brexit. Ireland is currently the most expensive country in the EU in which to buy alcohol

- Apply parity to wine taxation in relation to domestic alcohol. At present, retailers and suppliers need to raise and pay an extra € 17,958 per 1,000 cases of wine in excise and VAT due to increases in Budget 2013 and 2014.

- Reintroduce a ban on the below cost selling of alcohol to ensure that retailers cannot reclaim 23% of the loss in their VAT return; saving the State an average of € 24 million each year.

- Establish tighter control on out- of- state imports in terms of VAT and excise collection, thus ensuring out- of- state and online retailers cannot sell directly to Irish consumers without paying the required tax and VAT.

Therese Foley, from Foley’s Off- Licence, Sligo, said that excise has had a negative impact on her business even before Brexit.

“As a community- based business, excise has had a significant and negative impact on my operations. Excise was introduced in 2012 and 2013, as part of a suite of measures to combat against the economic crisis. The economic crisis is now over, and yet businesses like my own are still locked out from accessing the economic recovery”.

“A reduction in excise would also help businesses like my own to increase employment in the locality, which is currently being inhibited by Government policy. A 15% reduction would support the local and regional communities, which have struggled economically in recent years,” she added.

“Brexit is also a big concern, and considering the weakening of the Sterling, and the higher rates of alcohol excise in Ireland, relative to the UK, there has been a marked rise in the levels of cross- border trade. A reduction in excise could combat against this”.