60% of €8 Bottle Of Wine Goes To The Exchequer Following Budget Excise Increase
Published on Oct 16 2013 1:24 PM in Drinks
The Irish Wine Association (IWA) has said the most recent excise increase in Budget 2014 means Irish consumers now pay considerably more for the same wine sold in other European countries.
The IWA said that last year’s increase of 41% meant we had the highest wine excise in Europe, but the new 15% excise increase makes it significantly more. On a typical €8 bottle of wine, €4.78 of that €8 will now go to the Exchequer (in excise and VAT) or 60% of the cost. By comparison, there is only 3 cent of excise in France and there is no excise in Italy, Spain or Germany.
“Ireland’s wine industry was decimated after last year’s disproportionate excise increase," Michael Foley, Chairman of the IWA and Marketing Director at Findlater Wine and Spirits. "Today’s announcement will put the industry under further pressure. If we continue the trend 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 has left this important sector of the domestic economy vulnerable and in need of support." (By Francesca Plows)