Dáil Éireann debate -
Wednesday, 3 Jul 1991

Vol. 410 No. 3

Written Answers. - Soft Drinks-Non-Alcoholic Beers Revenue.

Michael Bell

Question:

27 Mr. Bell asked the Minister for Finance if he will outline in respect of soft drinks and non-alcoholic beers (1) the taxation and excise rates applicable for each in each of the years 1986-91, (2) the yield to the Exchequer for each of the years 1986-90 and the anticipated yield for 1991, (3) whether he has received representations since June 1990 to have the Exchequer levies reduced on the basis that the rates are such as to create a price incentive particularly to young people to consume alcoholic beverages; and if he will make a statement on the matter.

Minister for Finance (Mr. A. Reynolds):

The factual information requested by the Deputy is contained in a tabular statement which I propose to circulate in the Official Report.

In so far as VAT is concerned, it is not possible to furnish actual receipts as VAT returns are not completed in a manner which would enable the yield from particular items to be separately identified. The figures quoted are estimates of such receipts, derived from non-VAT statistical information.

Apart from the normal pre-budget submission from industry interests, the only representations of the specific type mentioned by the Deputy which I have received were from himself in the form of a Parliamentary Question on 30 April 1991, columns 1415-6 of the Official Report refer. There is little I can add to the reply I gave on that occasion.

TABLE WATERS

Rates of Excise Duty and VAT

Year	Rate of Excise Duty per gallon	Rate of VAT*
1986	£0.372 £0.36 (from 1 Oct)	23% (Jan.-Feb.) 25% (from 1 March)
1987	£0.36	25%
1988	£0.36	25%
1989	£0.36	25%
1990	£0.29 (from 1 Feb.)	23% (from 1 March)
1991	£0.29	21% (from 1 March)

Exchequer Yield

Year	Excise Duty	VAT (estimated)	Total
	£m	£m	£m
1986	14.6	27	41.6
1987	15.2	32	47.2
1988	16.8	35	51.8
1989	19.7	38	57.7
1990	18.0	38	56.0
1991 (estimate)	19.5	37	56.5

* Bottled waters are liable to the zero rate of VAT except when supplied in the course of operating a catering or public house business. In such cases VAT is chargeable at the lower rate of VAT (10% from 1/7/86 to 28/2/91 and currently 12.5%).

NON-ALCOHOLIC BEERS

Rates of Excise Duty and VAT (i.e. containing not more than 0.5% of alcohol by volume)

Year	Rate of Excise Duty per gallon	Rate of VAT
1986	£0.372	23% (Jan.-Feb.)
		25% (March-Dec.)
1987	£0.372	25%
1988	£0.372	25%
1989	£0.372	25%
1990	£0.372	23% (from 1 March)
1991	£0.372	21% (from 1 March)

Exchequer Yield

Year	Excise Duty	VAT (estimated)	Total
	£m	£m	£m
1986	0.11	0.5	0.61
1987	0.14	0.7	0.84
1988	0.11	0.6	0.71
1989	0.18	1.0	1.18
1990	0.16	0.9	1.06
1991 (estimate)	0.19	1.0	1.19