Dáil Éireann Debate, Tuesday - 20 January 2026
385. Deputy Tony McCormack asked the Tánaiste and Minister for Finance if his Department has considered the introduction of an excise rebate scheme for licensed premises, similar in structure to excise relief schemes operating in other sectors; and the current status of any such consideration. [3428/26]
Amharc ar fhreagra386. Deputy Tony McCormack asked the Tánaiste and Minister for Finance whether he acknowledges the concerns of licensed premises that did not serve food and therefore received no benefit from the 9% VAT rate; and whether an excise rebate scheme is being examined as a targeted measure to address this imbalance. [3429/26]
Amharc ar fhreagra387. Deputy Tony McCormack asked the Tánaiste and Minister for Finance if any preliminary costing has been undertaken by his Department in respect of a draft excise rebate scheme for licensed premises; and if such a scheme could be implemented within existing excise administration structures. [3430/26]
Amharc ar fhreagra388. Deputy Tony McCormack asked the Tánaiste and Minister for Finance the proposed timelines for decisions on an excise rebate scheme for licensed premises; if it is under consideration for inclusion in future budget or Finance Bill measures; and if he will make a statement on the matter. [3431/26]
Amharc ar fhreagraI propose to take Questions Nos. 385 to 388, inclusive, together.
Excise duty on alcohol is governed by EU law, with which Irish excise law is obliged to conform. The Alcohol Structures Directive (Council Directive 92/83/EEC) lays down a harmonised approach to excise duties on alcohol in the EU. It defines alcoholic beverages and sets out the basis on which excise duties on such products are to be established by Member States, as well as the conditions for the application of reduced rates and special regimes. In Ireland, the excise duty takes the form of Alcohol Products Tax (APT) and is provided for in Chapter 1 of Part 2 of the Finance Act 2003 (as amended).
The rate of APT applying to a particular alcoholic beverage depends on the category it falls within and its alcohol content which is expressed as the percentage of volume. Reduced APT rates can only be applied in limited circumstances, the main ones being for lower strength products and for independent small producers of beer, cider or perry, and these types of relief, which are allowed under the Directive, have already been introduced into Ireland's legislation as a feature of our APT regime. The Directive does not allow scope for the taxation of alcohol to be based on packaging format (such as different rates for kegs versus bottles or cans) nor on the point of consumption (such as different rates depending on whether the alcohol product is consumed in licensed premises or elsewhere).
Therefore, an excise rebate in respect of alcohol sold or consumed in licensed premised, as the Deputy is suggesting would not be compatible with the Alcohol Structures Directive. In addition, it is also probable that any arrangement to provide a payment or credit to certain businesses (such as licensed premises generally, or those of particular sizes or in particular types of location) would constitute a State aid and, therefore, would be restricted by the rules relevant to State aid.
In addition, the VAT rating of goods and services is governed by the EU VAT Directive with which Irish VAT law is required to comply. Under the VAT Directive, Member States are obliged to apply their standard VAT rate to the sale of alcohol products, and therefore, Ireland applies its standard rate of 23% to all alcohol products. There is no scope under the Directive for Ireland to introduce a lower rate or rebate in respect of VAT on alcohol.
Finally, it is worth noting that there has been no general increase in excise duty rates for alcohol since in 2014. The table provides details of the tax on a pint of beer since then and shows that, while the retail price of beer rose over the period, the excise duty 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.
Table: Retail price of a pint of beer, and tax as % of price
|
Year |
|
Price includes - |
|
|
Total tax as a % of retail price |
|
|
Price* |
Excise** |
VAT |
Total Tax |
|
|
2025 |
€6.51 |
€0.54 |
€1.22 |
€1.76 |
27% |
|
2014 |
€4.67 |
€0.54 |
€0.87 |
€1.41 |
30.20% |
|
Change |
€1.84 |
€0.00 |
€0.35 |
€0.35 |
3.2%pt. |
|
|
Increase |
Nil |
Increase |
Increase |
Decrease |
Notes: * Based on Central Statistics Office (CSO) data.
** Assumes alcohol strength (abv) of 4.2%.
Source: Revenue
