Tuesday, 15 October 2013
Commenting on Budget 2014, the Irish Spirits Association (ISA) today said the 10c increase of excise on a standard measure of spirits will mean that €16.40 of a €22 standard bottle of spirits now goes to the Exchequer. The group said that today's 15% excise increase plus last year's 20% excise increase means that Ireland has the third highest excise on spirits on Europe. The widening gap between VAT and excise on spirits in Ireland compared with Northern Ireland means a return to cross-border shopping is a real risk.
Commenting on the increase, Willie McCarter, Chairman of the ISA and Director of Cooley Distillery said: "As an industry that is consistently growing exports and creating Irish jobs, it is vital that we have a strong, sustainable business in Ireland. Excise increases damage our ability to trade domestically and could impact on investment, reputation, employment and export potential. Ireland now has the third highest spirits excise in the EU, which is an unsustainable position and puts jobs at risk throughout the domestic economy.
"Last year's excise increase did not yield the returns expected and has served only to damage the ability of the industry to trade efficiently both domestically and internationally. Instead of increasing excise to such unsustainable levels, Government should be doing everything in its power to support this important indigenous industry."