Dublin publicans have warned that unless the Government reverses the increase in excise rates introduced in last year’s Budget up to 2,000 jobs will be lost in the sector next year.
The LVA says that while retail sales have dropped by 12.5% over the last six years the pub trade has seen a fall of 33%. The Association believes this is why 923 pubs - 11% of the total in the country – have closed their doors over the same period.The publicans are also calling on the Minister for Finance to maintain the special 9% rate of VAT for the hospitality sector. The Irish Wine Association today also called on the Government to reverse the disproportionate excise duty increase that was introduced on the wine industry last year.
Speaking on the publication of its annual industry review, the Chairman of the IWA, Michael Foley said that the excise increase of 41% is damaging this important sector, which contributed €231 million in excise and €251 million in VAT to the Government in 2012.
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Mr Foley said that excise contributions from the wine industry are equivalent to 27% of the total alcohol excise collected. He said that the large excise increase introduced by the Government at the end of 2012 was significantly higher than the increases imposed on any other alcohol beverage category.