Irish pubs face closure crisis as 2,100 establishments have shut since 2005

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  • Over 2,100 Irish pubs have closed since 2005.
  • Alcohol consumption has dropped by over a third since 2001.
  • Taxes make up 27-29pc of the price of a drink in an Irish pub.
  • The drinks industry has called for a 10pc excise cut in the Budget.
  • Public health groups have lobbied for a 15pc excise increase.

Irish pubs are facing a significant decline over the past two decades, with over 2,100 pubs closing since 2005, according to industry data. The high tax rates and rising operational costs have created a significant burden for local businesses. The drinks industry has called for an immediate 10pc cut in excise duty in the upcoming Government Budget, arguing that taxes do not match modern habits.

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Irish adults are drinking less, with average alcohol consumption falling by 2.1pc recently, bringing Ireland in line with the standard European average. Overall consumption has dropped by over a third since 2001. When consumers buy a drink in an Irish pub or restaurant, taxes, including Excise plus a 23pc VAT rate, make up 27pc to 29pc of the total price. For a bottle of whiskey in an off-licence, taxes take up nearly two-thirds, 63pc, of the cost.

Public health groups like Alcohol Action Ireland have argued against the excise cuts, stating that alcohol has actually become more affordable over the last 20 years when compared to rising incomes. Instead of a cut, they have lobbied for the government to increase alcohol excise duty by 15pc to discourage harmful drinking.

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