The Government is under increasing pressure to ban below-cost sales of alcohol as figures indicate the taxpayer is effectively subsidising the drinks industry and supermarkets by €21 million a year through lost Vat and excise duty.
Minister for Children James Reilly acknowledged that underage and below-cost sales of alcohol “must be addressed” because retailers have been reclaiming Vat for losses on products they decide to sell below cost since the Groceries Order banning such sales was abolished in 2006.
The National Off-Licence Association estimates the exchequer loss at €21 million annually based on the volume of alcohol sales.
Lost VAT
Government backbencher and Fine Gael TD Michael Creed claimed in the Dáil last week that the exchequer was being “raped” for €21 million every year by the continuing licence to sell alcohol below cost. Dr Reilly agreed the issue “must be addressed”.
Mr Creed said that if a supermarket buys a bottle of beer for €1 and sells it for 50 cent, the retailer only pays excise and Vat on the 50 cent. “This is an absurd taxpayer subsidy to the drinks industry.”
Source: Marie O'Halloran, Irish Times, 06/10/14
Safer Student Nights
eBulletin
Poll
