The Drinks Industry Group of Ireland (DIGI) is advocating for a 15pc reduction in excise tax on drinks as part of Budget 2025, highlighting the financial strain on rural businesses and the hospitality sector due to rising operating costs.
Recent data shows that an average of 114 pubs have closed annually since 2005, with significant closures occurring in rural areas, emphasizing the need for immediate support to sustain the industry.
DIGI’s proposal includes a phased reduction of 7.5pc in excise tax over two years, which aims to align Ireland’s rates with lower EU averages and alleviate the competitive disadvantage faced by the country’s drinks and hospitality sector.
Consumer sentiment aligns with DIGI’s call for action, as polling indicates that half of the population supports reducing excise rates, which could lead to increased economic activity and tax revenue in the long term.
