NEWS/PRESS (full article)

Drinks Industry warmly welcomes Government decision to reduce excise by 20%

The Chairman of the Drinks Industry Group of Ireland (DIGI), Kieran Tobin, has warmly welcomed today’s Government decision to reduce excise rates by 20% as outlined in the Minister for Finance’s Budget 2010 statement.

Mr Tobin said this cut combined with the planned VAT reduction will come as a great relief to consumers, to retailers, to the pub and hospitality sector, and the wider drinks industry and will repatriate some of the revenue currently being lost to cross-border trade.

He added that DIGI is very confident that the full excise cut will be passed-on immediately to consumers.

Mr Tobin commented, “The Drinks Industry Group of Ireland wholeheartedly welcomes the Minister’s announcement. We have consistently said that our high level of excise that subjects consumers to the highest alcohol taxes in Europe, has been a major factor in encouraging cross-border shopping, where the lower UK excise and VAT regime combines with the Euro/Sterling price differential, to make prices significantly cheaper.

“With alcohol a key driver of cross-border trade, this announcement will change recent patterns of cross-border shopping and will provide a real stimulus to the wider economy by encouraging people to shop and socialise locally.

“In the context of this very positive decision, DIGI will continue to work with Government to support our industry and the 85,000 jobs we sustain, as well as the State and export revenues we generate.”

ENDS