Vol. 559 No. 5
148 Mr. Stanton asked the Minister for Finance the amount he expects to collect as a result of the additional excise duty on spirit-based alcopops imposed by the budget; his other reasons for imposing this additional duty; and if he will make a statement on the matter. [26827/02]
The change in the excise rate applicable to alcopops announced in the budget is expected to raise extra revenue in the region of €12.7 million in a full year. Since 1996, a lower rate of duty has applied to lower strength spirit-based drinks including alcopops. This lower rate was introduced to provide for broad equivalence of treatment with beer of similar strength. Market development means that alcopops are now considered to be spirit drinks in their own right and, as such, are more likely to compete with ordinary strength spirits and mixers than with beer. Indeed, the market for spirit based alcopops has trebled since 1997. As with the increase in the spirit excise rate, the restoration of the full spirit rate for alcopops is also aimed at contributing to tackling health and public order problems associated with excessive consumption of such drinks, particularly by younger people.
