Dáil Éireann Debate, Thursday - 28 January 2016
90. Deputy Michael McGrath asked the Minister for Finance the licence structure for licensed premises and off-licence premises; if he will link the licence fee paid by off-licence owners to the square footage of their premises; and if he will make a statement on the matter. [3703/16]
View answerI am informed by the Revenue Commissioners that the structure of licences for pubs and off-licences is provided for under the liquor licensing laws. With regard to off-licences, a separate licence is required to sell spirits, wine, beer, cider or sweets for consumption off the premises. The duty for each licence is €500 and is charged on a flat rate basis. Therefore, the annual licensing cost for a retailer selling wine only is €500 and the costs for a typical off-licence selling wine, spirits and beer is €1,500.
A spirit retailer's on-licence, i.e. a pub licence, allows the sale of any type of alcoholic beverage for consumption on or off the premises. As with an off-licence, a pub licence must be renewed annually. Licence duty is based on the annual turnover of the premises, less excluded turnover. Excluded turnover is turnover which is not related to the sale of alcoholic beverages, or turnover arising from the provision of meals. Different rates of licence duty apply depending on the band of turnover applicable to the premises. The following table sets out the pub licence duty rates currently applying to each band of turnover.
|
Turnover Band |
Licence Duty |
|
0-€190,499 |
€250 |
|
€190,500-€380,999 |
€505 |
|
€381,000-€634,999 |
€1,140 |
|
€635,000-€952,499 |
€1,775 |
|
€952,500-€1,269,999 |
€2,535 |
|
€1,270,000 + |
€3,805 |
Approximately half of all pub licences qualify for the €250 rate of duty.
I am not convinced that the Deputy's proposal of linking the licence fee to square footage would be practical to implement and I would have concerns that such a proposal may be open to inconsistent application.
