Irish Food And Drink Industry Responds To Budget 2020
The Irish food and drink industry has responded to the measures outlined in Budget 2020.
Commenting on Budget 2020 Paul Kelly, Director, Food Drink Ireland (FDI) Ireland said that if the support measures were rolled out efficiently and effectively, they could underpin the resilience of the agri-food sector, help maintain its UK market position as well as its ongoing focus on product and market diversification.
He added: “Food and drink exports to the UK will attract tariffs in the event of a no-deal Brexit and will also face additional trading costs from non-tariff barriers. Irish food and drink exporters, operating on narrow margins and already struggling with a 20% depreciation in sterling, are in no position to absorb these tariff and trade costs.
The new temporary tariff schedule published this morning by the UK Government continues to be very problematic for some foods and unless we see a significant degree of cost recovery in the marketplace, exports to the UK will be badly affected. This will require a multi-annual framework for Brexit mitigation.”
Spirits industry welcomes changes to EII scheme
Commenting on the changes introduced in the budget to the Employment and Investment Incentive (EII) Scheme in Budget 2020, Vincent McGovern, Head of Drinks Ireland | Spirits, which represents spirits producers in Ireland said: “Drinks Ireland | Spirits welcomes the announcement of changes to the EII scheme in Tuesday’s budget.
These changes, which result in the full income tax relief being provided in the year of investment, the annual investment limit for the incentive being increased to €250,000 and in particular providing for a new €500,000 annual investment limit for those investors who are prepared to invest in the scheme for ten years or more are welcome.
Drinks Ireland | Spirits believes that these changes will help smaller distilleries as they recognise the fact that they are not the same as other small companies and that the practicalities of setting up a whiskey distillery are different.”
Beer industry welcomes excise relief production ceiling increase
Commenting on the excise relief production ceiling increase in Budget 2020, Jonathan McDade, Head of Drinks Ireland | Beer said: “Drinks Ireland | Beer welcomes the increase in the excise relief production ceiling for microbrewers announced in Budget 2020, which increased from 40,000 hectolitres to 50,000 hectolitres per annum.
This means that a microbrewer can get an excise rate relief of fifty percent, if it produces less than 50,000 hectolitres of beer per annum.
This includes a ceiling of 30,000 hectolitres for domestic sale. This measure will assist microbreweries with ambitious expansion plans, particularly those looking to increase exports, and could enable international beer consumers to enjoy more craft beer from the Irish market.
© 2019 Checkout – your source for the latest Irish retail news. Click sign-up to subscribe to Checkout.