Publicans call for 40% excise rebate on pints
The Vinters Federation of Ireland has called for a 40% rebate in excise on pints of beer sold in pubs.
Earlier this month, figures from the CSO showed bar sales dropped 9.9% in the 12 months from March 2024. This was the largest annual drop in volume sales of any sector.
VFI, which is holding its annual general meeting in Limerick this week, says a rebate on draught beers would help protect rural pubs as the sector struggles with high costs. 'Publicans are not asking for a handout – we are asking for fairness,' said VFI chief executive Pat Crotty.
Tax of €1.62 makes up around 28% of the price of a pint, says VFI. 'A 40% rebate on the excise charged on draught products is a practical, targeted support that would make a real difference for small pubs across Ireland.' Ireland has the second-highest excise rate on alcohol in Europe, with taxes accounting for nearly 30% of the price of a pint. This is placing severe financial pressure on publicans, particularly in rural areas, the VFI said.
'These are businesses at the heart of their communities, providing employment, social connection and play a key role in our tourism offering,' said Mr Crotty.
The Government plans to cut Vat for hospitality to 9% in the next budget. However, Mr Crotty said pubs not serving food would be left without support. VFI estimated that a rebate would cost the State €73m annually but said this was 'a small fraction of the Vat proposal', which is estimated to cost around €545m.
VFI proposes a €20,000 limit on the rebate. A 50-litre keg of Guinness containing 88 pints and generates €47.36 in excise per keg so a 40% rebate would be €18.94 per keg, and to receive the full rebate of €20,000, a pub would need to sell 1,056 kegs annually or 20.3 kegs weekly. Most rural pubs would not sell this volume of kegs, VFI noted.
VFI said that between 2005 and 2023, the number of public houses outside Dublin fell by 2,032 – a 25.9% decline, from 7,831 to 5,799.
'Rural pubs are facing an existential crisis,' adds Pat Crotty. 'We have seen hundreds of pubs close their doors in recent years. If this trend continues, we will lose a vital part of Irish culture and community life. A draught rebate is a simple, fair, and targeted measure that would provide immediate relief.'
It's not envisaged the price of a pint would come down if the rebate was approved though individual publicans "would be perfectly entitled to lower price if they wish", a VFI spokesman said.
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