Michael Healy-Rae
Ceist:219. Deputy Michael Healy-Rae asked the Minister for Finance his views on correspondence regarding the cider industry (details supplied); and if he will make a statement on the matter. [47686/12]
Amharc ar fhreagraTuesday, 6 November 2012
Ceisteanna (219)
Freagraí scríofa
Under EU law (Art 13(2) of Council Directive 92/83/EEC) we are obliged to apply the same rate of excise duty to all other fermented beverages, which include cider. Ireland has however used the option under paragraph (3) of that article, to apply two lower rates to cider below 8.5% vol and 6% vol. In addition, a further reduced rate of tax for low strength cider was introduced, with effect from 15 October 2008, for cider of a strength not exceeding 2.8% alcohol by volume, as provided for Under Article 5 of the Directive. The Deputy refers to the UK in his question, the UK exemption is a historical one which was in operation prior to the implementation of the Directive in 1992. Under the current EU legislative framework, a reduced rate can only be applied on the basis of strength, and there is no provision for exemption based on size of operation. The Deputy should note that a cider manufacturer's licence is also required for the production of cider on a commercial basis under the Finance (1909-1910) Act 1910.