Ceist:
137 Dr. Upton asked the Minister for Finance his views on the proposals from the Vintners' Federation of Ireland that VAT be cut on the price of alcoholic beverages in licensed premises. [14721/00]
Written Answers. - Tax Reliefs.
Under EU VAT law, with which Irish VAT law must comply, it would not be possible to reduce the standard rate of VAT on alcoholic beverages, without a general reduction in the standard rate of VAT.
I would say that there has been a generally restrained approach to alcohol taxation and there has been no increase in the excise duty on alcohol since 1994. However, the retail price of alcohol as measured by the CPI has increased above headline inflation since 1998 and the year-on-year increase in the retail price of alcohol has increased from 3.8% in December 1999 to 5.2% by April of this year.