Irish Distillers have warned that it the government that increase excise duty in next week's budget, it will kill of the pub industry.
Anna Malmhake, chief executive of Irish Distillers, says the section was close to dipping point last year. Further tax on alcohol could drive consumers across the Border in search of cheaper alcohol which cause severe damage the industry.
"There is a danger that you kill the golden goose. If you look at somewhere like Sweden, the on-trade has almost been wiped out because the high levels of duty mean most people can't afford a few drinks in a pub." she told the Irish Independent today.
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The Alcohol Beverage Association of Ireland (ABAI) stated yesterday that certain drinks are already 30% cheaper in Northern Ireland.
Ms Malmhake added that there will be numerous job losses if the Government goes ahead with the proposed ban on alcohol sponsorship.