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Irish Wine Association calls for 20pc cut in excise duty

23.11.2009
The Irish Wine Association has called on the Government to cut excise duty by 20pc in the upcoming December Budget as recent figures from the Revenue Commissioners have shown that sales of wine have fallen 10.9pc in the year to date.

The Chairperson of the Irish Wine Association Philip Robinson also highlighted the impact last year’s 50 cent excise increase on every bottle of wine has had on sales in the industry.

According to Robinson, the wine industry in Ireland had suffered over the past 13 months with job losses in the order of 25pc and falling sales.

Robinson said the cut in excise duty was need to save further jobs and revenue but also to restore the Republic’s competitiveness with Northern Ireland and stem the tide of cross-border wine shopping.

“For many years the wine sector was a growing industry in Ireland, to the extent that it accounts for over 20pc of the total alcohol market, contributing over €460m in VAT and excise revenue to the State,” Robinson said.

“However, Irish consumers are subject to the highest excise duties on wine in the European Union, and since the Government decision to impose a further 50 cent on every bottle in the October 2008 Budget, wine sales have declined significantly.

“Latest figures from the Revenue Commissioners show that sales of wine have declined 10.9pc in the year to date. This far exceeds the total for 2008 when sales of wine recorded their first dip of 2.5pc for the total year,” he added.

Robinson also highlighted the effect the major increase in cross-border trade is having on the wine industry.

“The euro/sterling differential combined with lower excise rates in the UK means that many Southern wine retailers simply cannot compete with Northern counterparts,” he said, adding that it is estimated that up to 6.2pc of wine purchases by Southern consumers are now being made across the border.

“As a result, many of the wine distributors that I represent are suffering from low levels of demand, with companies having to reduce staff numbers or, even worse, go into liquidation,” Robinson said.