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Tax, costs 'draining drink industry'

Drinks report - More imported products
Drinks report - More imported products

€1 of every €3 spent by Irish consumers on alcohol ends up in the Government's pockets, according to the body representing the drinks industry.

The Drinks Industry Group of Ireland (DIGI) has published a report it commissioned, carried out by Anthony Foley of Dublin City University Business School.

It found that more than €2.2 billion was paid in tax on alcoholic drinks in Ireland last year. The report says Irish excise duties on alcohol are among the highest in Europe - beer tax is ten times that of Germany and seven times that of France.

Alcohol consumption peaked in Ireland in 2001, and has declined by over 5% since then. But the report says we are drinking more imported products. The consumption of domestically produced alcohol fell by 22% since 2000, while beverages produced abroad but consumed here rose by 90%.

The industry employs more than 62,000, but numbers have fallen over the past eight years. The report finds that more than half of pubs have sales of less than €200,000 a year.

DIGI chairman Michael Patten said the industry was being squeezed through higher input costs and penal taxation levels. He said the report highlighted the extent to which Irish companies were losing out to foreign manufacturers.