asked the Minister for Finance the present level of taxation on beer in the Republic and in the EEC; and what sum would fall to revenue under excise duty on beer for 1970-71 if the average EEC taxation on beer were applied.
Ceisteanna—Questions. Oral Answers. - Beer Taxation.
51.
The Irish rate of excise duty on beer is £29.167 the standard barrel, which is the equivalent of approximately £21.2 for a barrel of beer of average gravity as sold retail. Turnover tax is also payable at the rate of 5 per cent on receipts from retail sales.
The level of taxation on beer in the EEC, by way of excise duty and sales taxation, varies from country to country. The structures of the duties and the methods of their application are such that their incidence cannot readily be compared with that of the Irish duties. Broadly, however, it can be said that the application of the average burden of taxation borne by beer in the EEC countries in 1970-71 to the Irish consumption of beer in that year would have resulted in a yield of less than half of that actually obtained.
Am I to understand that, under EEC conditions, if we had their system of taxation here our revenue from beer would be half what we are getting now?
Broadly speaking, that is correct. It is, however, very difficult to make any comparison because both the rates and the methods of application vary from country to country in the EEC.
Will there be a phasing-in period during which we will have to bring our beer taxation and analogous taxation into conformity with the EEC?
No firm decisions have been taken and none certainly will be taken before our accession. If the necessity for making such a decision arises after accession we will, of course, have a say in the matter. Indeed, I think this would require unanimity of the Council.
I take it that, while no decision has been taken, it is probable that this is what will happen?
It has been envisaged, but it is another thing to say that it is probable.