Subscribe Login
Retail Intelligence

NOffLa Calls For Ban On Below Cost Alcohol Sales

The National Off-Licence Association (NOffLA) has called on the Government to ban below-cost selling of alcohol, as part of its pre-budget submission.

It claims that high excise rates have already pushed many off-licences to the brink of commercial failure; a challenge to the sector that it believes is exacerbated by competition from mixed traders that can sell alcohol at a lower price.

The group also claims that the state is essentially subsidizing traders that sell alcohol as loss leaders to the tune of €24 million per year.

It says that if at least 40% of the total alcohol sold in mixed trading outlets in 2013 was sold at below cost, this would equate to €516.8 million (including VAT applied at 23%).

The retail price of €516 million without VAT is €420 million. The VAT collection, or the difference between the two figures, equates to €96.6 million.

‘If the alcohol sales totalling €420 million has been sold at a reduced price of 20% below cost, then these goods would have originally cost €525 million to purchase and the VAT charged on the purchase invoice on the cost of these goods would be €120.75 million,’ it noted in its submission.

‘When these figures are returned to the Revenue, the VAT collected on their sale is €96.6 million. But the VAT charged when they were bought is €120.75 million. Therefore, the Irish Revenue must rebate the difference which is €24 million.’

Its budget submission also asks that the Budget 2014 15% excise duty increase on alcohol be reversed, noting that Irish rates of excise are now 624% higher than the EU average for wine, 298% for beer and 243% for spirits.

It also wants the State to restore parity to wine taxation in relation to domestic alcohol, as well as establish tighter controls on out-of-state imports in terms of VAT and excise collection.

© 2016 - Checkout Magazine by Jenny Whelan

Stay Connected With Our Weekly Newsletter

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our Terms & Conditions and Privacy Policy
Enjoy unlimited digital access for 30 days
Enjoy full access to Checkout Magazine, our weekly email news digest, access to all website and app content, and the latest digital magazine for a full 30 days.
Enjoy unlimited digital access for 30 days
Enjoy unlimited digital access for 30 days
Enjoy full access to Checkout Magazine, our weekly email news digest, access to all website and app content, and the latest digital magazine for a full 30 days.
Enjoy unlimited digital access for 30 days