The research, which was carried out by DCU economist Anthony Foley and commissioned by the Drinks Industry Group of Ireland (DIGI)
Irish consumers pay the second-highest excise duty on alcohol in Europe with only Finland charging its citizens higher rates, research published today confirms.
The in-depth research shows that Irish excise tax on beer, spirits and wine combined is the second highest in the EU & UK. When broken down by category, excise on wine in Ireland is the second highest in the EU and UK, while excise on beer and spirits is the third highest.
The extent of excise tax applied in Ireland can be seen from the fact that a pint of beer purchased in a pub here attracts excise of €0.55 compared to just €0.05 in Spain and Germany. Similarly, even though whiskey is produced in Ireland, a 70cl bottle of the spirit is levied with €11.92 excise here, representing more than half of the price customers pay, compared to a far lower rate of €2.69 excise in Spain and €3.65 in Germany.
The research, which was carried out by DCU economist Anthony Foley and commissioned by the Drinks Industry Group of Ireland (DIGI), shows a similar trend across wine, with excise making up €3.19 of the €11 cost of a standard bottle of wine purchased in an off-licence in Ireland.
When VAT of €2.06 is included, this means that 48% (€5.25) of the overall purchase price goes directly to the Government. The rate of tax charged on an €8.50 glass of wine in a bar or restaurant is somewhat lower but still makes up €2.39 of the purchase price, when excise of €0.80 and VAT of €1.59 are combined.
By contrast
By contrast, 14 European countries don’t charge any excise at all on wine, including Spain, Portugal, Italy, Germany and Greece. France, meanwhile, charges just €0.01 on a standard glass of wine.
Associate Professor Emeritus, DCU Anthony Foley said:
“The main aim of this report is to objectively assess what the rate of excise in Ireland is compared to other countries across Europe. The results show without doubt that Ireland has a very high level of alcohol excise tax in 2026 when compared with the large majority of other countries.”
The high rate of pub closures in Ireland in recent years
DIGI has said that the high rate of excise is one of the main factors behind the high rate of pub closures in Ireland in recent years, something which the Government must begin to take responsibility for. It is calling for a 10% reduction in excise in the upcoming Budget to improve the viability of the Irish pubs and ensure they can continue to make a valuable contribution to their communities.
Secretary of DIGI, Donall O’Keeffe, said:
“Today’s report confirms that the level of tax levied on alcohol on Ireland is far above most of our European neighbours. While there may have been some argument for this when Irish alcohol consumption was among the highest in Europe, consumption has dropped to average European levels in recent years. As a result, the main impact such high taxes are having now is simply to make our pubs too expensive for locals and tourists alike and to push them out of business,” he said.
“The Government needs to wake up to the reality that super high taxes on alcohol are killing our pub industry. Irish pubs are celebrated around the world and are often the only community hub in isolated communities, yet the Government seems to be content to tax them out of existence. High excise also has a negative impact on associated businesses such as breweries, distilleries and off-licenses. The rapid decline of the Irish pub will only gather pace unless the Government wakes up to this reality. That is why DIGI is calling for an immediate 10% cut in excise in this year’s Budget.”
