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The VFI broadly welcomes the budget measures on alcohol

08-October-2008

The Vintners' Federation of Ireland (VFI) welcomed the government's decision not to impose any hike in excise on beer, cider and spirits in the budget. The VFI also commended the government on its decision to reduce excise on drinks with low alcohol content which should encourage the safer use of alcohol. However, the VFI expressed a certain degree of disappointment with the increase on standard rate of VAT from 21% to 21.5% which may impact negatively on visitors to Ireland and the 50c increase in excise on a bottle of wine. Padraig Cribben, CEO of the VFI said; "We welcome the government's decision not to increase taxation on beer, cider and spirits and the move to reduce excise on drinks with low alcohol content. Any increases in taxation on beer, cider and spirits would have been extremely unhelpful in the current economic climate and the VFI believes the sector would have struggled to cope." "It is however regrettable that the standard rate of VAT will be increased from 21% to 21.5%. The standard rate of VAT before the budget of 21% on alcohol products was already higher than the rate that applies in Austria, France, Greece, Italy, Luxembourg, the Netherlands, Spain and the UK and the increase to 21.5% just further exacerbates this."