Home > 87. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance when the review of the excise duty payable for licences for on-trade and off-licence sales of alcohol products which was announced on 7 December 2010 will commence; the terms of reference for the review. [13792/11]

[Oireachtas] 87. Deputy Caoimhghín Ó Caoláin asked the Minister for Finance when the review of the excise duty payable for licences for on-trade and off-licence sales of alcohol products which was announced on 7 December 2010 will commence; the terms of reference for the review. [13792/11]. (01 Jun 2011)

URL: http://debates.oireachtas.ie/dail/2011/06/01/00065...


Minister for Finance (Deputy Michael Noonan): The previous Minister for Finance, Deputy Lenihan, indicated in his Budget Statement on 7 December 2010 that a review would be undertaken of the excise duty payable for licences for on-trade and off-licence sales of alcohol products during 2011. In that context, it has to be recognised that the main Exchequer receipts for the sale of alcohol arise from excise on alcohol products, which for example yielded €968 million in 2009, compared to a yield of approximately €13.6 million in respect of all alcohol excise licence fees.

Off-licence owners require a licence for each type of alcohol they sell, for each premises. Excise duty on off-licences is currently set at €500 each per licence for a beer, wine or spirits off-licence, having been increased in recent years. This means that a typical off-licence premises, including a supermarket, that offers the full range of alcoholic beverages for sale will have three off-licences and will be paying €1,500 per annum in duty. Pubs have a graduated licence duty fee structure, based on turnover, ranging from €250 to €3,805. Although there are six bands, over 70% of pubs fall within the two lowest bands and pay excise duty of €505 or less. Some 85% of pubs pay annual licence fees of €1,140 or less, which is well below the usual full off-licence trader at €1,500 per annum.

 

Approximately 10% of pubs pay licence fees that are clearly above those of off-licence traders. The amounts involved are minor compared to the overall tax take otherwise from alcohol. The average licence fee paid by the on-trade is around €778. As is customary, the excise duty payable for alcohol licences will continue to be kept under review.

Written Answers - Tax Code
1 June 2011
Vol. 734 No. 1

Item Type:Dail Debates
Source:Oireachtas
Date:1 June 2011
EndNote:View
Subjects:B Substances > Alcohol
L Social psychology and related concepts > Physical context or place > Alcohol beverage sales outlet
MP-MR Policy, planning, economics, work and social services > Economic policy
MP-MR Policy, planning, economics, work and social services > Economic aspects of substance use (cost / pricing)
VA Geographic area > Europe > Ireland

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