Vol. 569 No. 3
197 Mr. J. Bruton asked the Minister for Finance the information his officials have in relation to actual or potential out of State sourcing of spirit products by Irish traders or consumers, particularly in the context of the current strength of the euro versus sterling; and if he will make a statement on the matter. [17616/03]
I am informed by the Revenue Commissioners that much of the spirits sold in Ireland is sourced from manufacturers and distributors outside the State and they come within the excise system. Additionally, I am informed that there are a number of UK based drinks companies with depots in the State which have traditionally sourced their supplies of alcoholic products, including spirits, in the UK and account for their excise duty payments at various points of importation, including the facilitation stations on the land frontier. It is not considered that the recent strengthening of the euro has impacted on the volumes involved. As regards consumers, a recent cross-Border price survey of excisable products indicated that spirits and other alcohols are now cheaper in the sterling area. As the Deputy will be aware, cross-frontier differentials in price can influence consumer behaviour and ultimately impact on tax receipts.
In accordance with the Single Market arrangements private shoppers may bring into the country considerable quantities of duty paid spirits from other member states for personal use. Revenue keeps such developments under review to ensure that abuses of the system are detected. In the case of the licensed trade, the situation is being closely monitored in liaison with the drinks industry, and appropriate action is being taken on a case by case basis with over 11,000 litres of alcoholic products being seized in 2002 and over 6,500 litres having been seized so far in 2003. In addition, since the end of 2001, 22 licensed premises have been detected in possession of illicit spirits some of which is believed to have originated in Northern Ireland. Six of these cases have already been successfully prosecuted and further cases will come before the courts in the coming months.
198 Mr. J. Bruton asked the Minister for Finance the excise income for the period 1 January 2003 to date; if his officials are of the opinion that as a result of the budget measures, the level of revenue will decline as it did for a number of years pre-1984; and if he will make a statement on the matter. [17630/03]
I assume the Deputy is referring to the excise income on spirits for the period 1 January 2003 to date and also for the years pre-1984. As the Deputy will be aware, in my budget 2003, I announced an increase in excise duty of 20 cent – VAT inclusive – on a standard measure of spirits. The excise duty rate on spirit-based alcopops was also increased to the full spirit rate. This meant an increase of approximately 35 cent – VAT inclusive – on a bottle of this product. These increases took effect from midnight on 4 December 2002. The total excise net receipts for spirits for the period 1 January 2003 to end May 2003 – latest available figures – is €106.8 million. The performance of tax revenues, including excise duties, depends much on the performance of the economy which has been sluggish. While we hope to benefit from the international pick-up in economic activity which is forecast for the last quarter of 2003, it is generally recognised that the risks to economic projections are decidedly on the downside at this time.
