Irish consumers pay 20 times more excise tax on rosé, compared to Greece, research shows.
Wine drinkers in Ireland are paying more excise tax on their glass of wine than anyone else in the European Union, according to the Drinks Industry Group of Ireland (DIGI).
Irish consumers pay 80 cent excise tax on a standard glass (187ml); compared to four cents per glass in Greece, which pays the second highest; and one cent for the equivalent in France.
The research indicated that half of all EU states charge no excise tax on wine.
Increasingly Prohibitive Luxury
When VAT is applied in addition to excise, 34% of the cost of a glass of wine reportedly goes to the government in taxes in Ireland.
“Even if consumers avoid the sun and stay in, enjoying a glass of wine at home has also become an increasingly prohibitive luxury,” the umbrella organisation for the wider drinks and hospitality industry in Ireland said in a statement.
“When an Irish consumer purchases a €10.50 bottle of wine in an off-license, €5.12 will go to taxes through VAT and an additional excise tax – almost half of what they spent.”
Jeopardising Ireland’s Wine Industry
The research shows that it's not just consumers that are getting burned; restaurants, bars and off-licences are suffering too.
Donall O’Keeffe, secretary of DIGI and chief executive of the Licensed Vintners Association highlighted that while Ireland is not a wine-producing country, we are a nation of wine drinkers supported by a network of long-established wine importing and distribution businesses.
Since wine is not produced in Ireland, the costs of importing are 'compounded by excise tax for importers'.
“Our punitive wine excise tax – the highest in the EU – slows the growth of these businesses and impacts their day-to-day operations and bottom line,” he said.
Wine drinkers pay 80 cent excise tax on a standard glass (187ml); compared to four cents per glass in Greece; and one cent for the equivalent in France.
O'Keeffe added, "DIGI is calling on the Government to reduce Ireland’s high rate of excise tax."
© 2018 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click subscribe to sign up for the Checkout print edition.