Dáil Éireann Debate, Wednesday - 1 July 2026
137. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance his views that targeted tax reliefs can be an effective means of supporting strategically important sectors, as evidenced by existing tax credit schemes operated by the State; and whether similar measures are being considered for pubs as part of Budget 2027. [50214/26]
View answerThe Government is conscious of the challenges facing all businesses in the current economic climate, including the pub sector. The Cost of Business Advisory Forum is working to look at the structural issues that are driving up costs and the steps that could be taken to mitigate them.
As the Deputy notes, targeted tax reliefs can be an effective means of supporting certain sectors. However it must also be noted that targeted measures are likely to be considered State aids and there are strict limitations on the abilities of Member States to introduce such measures.
It is also worth noting that direct expenditure supports such as grants, innovation vouchers and Enterprise Ireland funds, in line with State aid rules, can sometimes be more effective in achieving policy objectives, particularly for smaller businesses. A range of direct expenditure supports are available to businesses, and details can be found online on the National Enterprise Hub.
There are a number of existing tax supports available to all businesses, including the pub sector. These are intended to encourage investment in the economy and in particular in indigenous SMEs. These measures provided for by Part 16 of the Taxes Consolidation Act 1997 include the Employment Investment Incentive the Start-Up Relief for Entrepreneurs and the Start-Up Capital Investment.
In addition, the Government announced two energy support packages earlier this year which included temporary excise rate reductions for auto fuels and Marked Gas Oil and an enhancement to the Diesel Rebate Scheme. Government also announced the deferral of the planned 1 May carbon tax rate increase until 14 October 2026. While no Government can fully insulate against energy price shocks, these measures provide support to households and the broader economy by alleviating some of the financial pressures arising from fuel price increases.
It is also worth noting that there has been no general increase in excise duty rates for alcohol since in 2014. While the retail price of beer has risen over that period, the excise duty has remained unchanged and, therefore, the total tax as a percentage of the retail price of each pint is now lower than it was more than a decade ago.
Notwithstanding the above, issues concerning the sector will continue to inform ongoing policy considerations in the context of the budgetary process.
