Dáil Éireann Debate, Wednesday - 31 May 2017
123. Deputy Thomas P. Broughan asked the Minister for Finance if he will bring the liquor licence fees for the off-trade in line with the on-trade which is graduated and based on annual turnover; and if he will make a statement on the matter. [26267/17]
View answerThe issue of applying turnover-based licensing to the off trade was considered in TSG15/05 General Excise Duties Tax Strategy Group paper in advance of Budget 2016, and is available on my Department's website: http://www.finance.gov.ie/what-we-do/tax-policy/tax-strategy-group/tsg-2015/tsg-papers-budget-2016.
In relation to the off-trade, 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 costs for a typical off-licence selling wine, spirits and beer is €1,500.
In relation to the on-trade, the licence is based on the 'annual turnover', which includes the provision of entertainment, sale of snack foods, beverages or meals for consumption on the premises and the sale of tobacco products. The average payment of on-trade licences in 2016 was €737. It should also be noted that over 75% of on-trade undertakings pay the two lowest rates of either €250 or €505.
Applying turnover based licensing for the off trade has been seen as a mechanism to level the playing field between on trade and off trade and to tackle the issue of below cost selling by increasing the charge on off licences. However, as you can see from the information above, the off trade licences are more expensive than the vast majority of the on trade licences being issued.
I will ask my officials to continue to monitor the situation but until I see compelling evidence of the benefits of applying a turnover base licence to the off trade, I have no plans to interfere with the current regime.
