37. Deputy Pádraig Mac Lochlainn asked the Tánaiste and Minister for Finance the measures being considered to support the sustainability of rural pubs, given their important social, cultural and economic role in rural communities and the continued closure of such businesses; and whether he will support the introduction of an on-trade sustainability support scheme to help protect the future viability of rural pubs. [67382/26]

Simon Harris, Tánaiste and Minister for Finance: The Department of Finance receives pre-Budget submissions from a wide range of stakeholders in advance of each Budget, and all are given consideration as part of the annual policy cycle.

My Department has received and acknowledged a submission from the Vintners Federation of Ireland outlining a proposal for a payable tax credit linked to the number of draught product kegs purchased by a business, subject to a per premises cap termed the “On-Trade Sustainability Scheme”.

Officials from my Department are considering the proposal and I have met with the VFI and representatives of wider hospitality sector as part of annual Ministerial Pre-Budget engagements for Budget 2027.

Proposals for new tax expenditures are examined by reference to the Department of Finance Tax Expenditure Guidelines, which outline the Government’s approach to when tax expenditures are best used, noting that these narrow the tax base, and how they should be evaluated.

Any tax measure related to the supply of alcohol would need to be considered in line with the Alcohol Structures Directive. In the case of a proposal for a targeted tax incentive consideration must also be given to European State aid requirements. These considerations form part of the work underway by my officials to assess the proposal.

It is important to note that there has been no increase in excise duty rates for alcohol since in 2014. While the retail price of beer has risen over that period, the excise duty has remained unchanged and, therefore, the total tax as a percentage of the retail price of each pint is now lower than it was more than a decade ago.

It is also important to note that it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

As a general point, the Government is conscious of the challenges facing all businesses in the current economic climate. The Final Report of the Cost of Business Advisory Forum was published recently, and this report contains 63 recommendations aimed at reducing business costs, strengthening competitiveness and easing regulatory burdens. The Government will give careful consideration to its recommendations and will issue a formal response in due course.

Notwithstanding the above, the matters raised in the submission will continue to inform ongoing policy considerations in the context of the budgetary process.