National charity Alcohol Action Ireland has today urged the government not to lower excise duty in the next budget.
The charity today released its pre-Budget submission and said that in recent years increases in excise duty have reduced alcohol consumption and generated significant additional revenue for the Exchequer. Cuts to the duty have had the opposite effect, it pointed out.
“Therefore, to cut excise duty makes no sense for the physical, mental or financial health of the nation,” said CEO Suzanne Costello.
When excise duty was cut on all alcohol products, consumption increased by 6% and excise receipts for the State were reduced by €142 million, while in 2013, when there was an increase in excise duty on all alcohol products, consumption fell by 9.5% and excise receipts increased by almost €150 million.
The alcohol industry has been calling for a cut in the duty, claiming high prices are having a huge impact on businesses – especially pubs – and on tourism.
However Costello said there is “a high price to pay for cheap alcohol as it leads to increased consumption and that leads to greater harm being caused for individuals, families and communities throughout Ireland”.
Responding to this, the Drinks Industry Group (DIGI) said that the budget submission glossed over some of the facts, pointing out that “increasing tax on alcohol, including excise does not address misuse of the product”.
The group said 1,000 pubs in Ireland have closed since 2007 and that the pub is “widely considered to be one of the safest places to drink by health professionals”.
Source: Michelle Hennessy, thejournal.ie, 04/09/14