Wine body calls for reversal of excise duty hikes

The Irish Wine Association has appealed to the Government to reverse excise duty increases to protect Ireland's competitiveness as a tourist destination.

Last year’s budget introduced substantive increases in the excise duty of wine, spirits, beer and cider. However, the excise increase of 41 per cent imposed on wine was significantly higher than the increases imposed on other alcoholic beverages.

Launching the Irish Wine Association's annual report, chairman Michael Foley said Ireland was now one of the most expensive countries in which to buy wine, with the highest levels of excise in the EU.

“The reversal of this unfair increase and the protection of the sector is crucial for many small family-run businesses and for the Irish hospitality sector, which employs 10 per cent of the entire national workforce.”

The report showed about 50 per cent of the cost of a bottle of wine goes to the exchequer, with the industry contributing €231 million in excise and €251 million in VAT in 2012. The Irish public continues to be one of the lowest consumers of wine in Europe at 17 litres per capita, compared to 30 litres in Denmark.