Tuesday, 15 October 2013
The Irish Wine Association (IWA) today said the most recent excise increase in Budget 2014 means Irish consumers now pay significantly more for identical bottles of wine sold in other European countries. Last year's 41% excise increase already meant we had the highest wine excise in Europe, and today's 15% excise increase widens the gap even more. Following today’s increase, €4.78 of an €8 bottle will now go to the Exchequer (in excise and VAT), or 60% of the total cost. By comparison, there is no excise on wine in Spain ,Italy or Germany and just 3 cent per bottle in France.
Commenting on the increase, Michael Foley, Chairman of the IWA and Marketing Director at Findlater Wine and Spirits said: "Ireland's wine industry was decimated after last year's disproportionate excise increase. Today's announcement will put the industry under further pressure. If we continue the trend of having the highest wine excise in Europe, we run the risk of a return to cross-border shopping as well as negatively impacting consumer confidence and tourism, and inevitably causing job losses.
“We understand that the Government finances are under considerable pressure; however, last year’s excise increase has left this important sector of the domestic economy vulnerable and in need of support.”