Billy Kelleher
Question:212. Deputy Billy Kelleher asked the Minister for Finance if he will reverse the increase in excise on spirits imposed in 2014 budget; and if he will make a statement on the matter. [46871/15]
View answerWednesday, 13 January 2016
Questions (212)
Written answers
As the Deputy is aware, the consumption of alcohol can have negative social and public health implications as well as economic costs. It is for this reason that excise duty is levied on alcohol products to account for these externalities.
The increase in the rate of excise duty imposed on spirits in Budget 2014 must be viewed in context. The rate of duty on spirits remained unchanged between 2003 and 2009. Excise on spirits was reduced in Budget 2010 but subsequently increased in Budgets 2013 and 2014 in order to assist Government finances. However, it should be noted that currently excise, as a percentage of the retail price of a glass of spirits, is 14.7%, which is significantly lower than in 2003, when it was 17.3%.
Reducing the excise duty on spirits, as requested by the Deputy, would cost in the region of €35m in a full year. This Government, in the limited fiscal space available, has prioritised reducing taxation on income earned in employment, in preference to other areas such as on alcohol products.
Accordingly, I have no plans to reverse the excise increase on spirits provided for in Budget 2014.