Vintners welcome restraint

THE Vintners Federation of Ireland welcomed the decision not to impose any tax increase on drink and the reduction in corporation…

THE Vintners Federation of Ireland welcomed the decision not to impose any tax increase on drink and the reduction in corporation and personal income tax rates. Mr Paul O'Grady, the federation president, said Ireland has the highest rate of tax on beer of all European countries and is second highest on spirits.

"Naturally we would prefer to, see the tax on drink being reduced, but appreciate that at least the Minister maintained tax at the "current rate," Mr O'Grady said.

He welcomed the increase in Capital Acquisitions Tax from 75 per cent to 90 per cent which "will greatly assist many family owned pubs who wish to transfer their business to the next generation".

Mr Ciaran Fitzgerald, director of the Food, Drink and Tobacco, Federation within IBEC, said it was disappointed that the "minor adjustments" made to employers" PRSI will cost the sector more than £1 million.