The Vintners Federation of Ireland is urging the Government to urgently address the severe challenges facing the pub industry in Budget 2025.
The VFI has warned that without targeted support measures in the Budget on October 1, many well-run pubs across the country risk closure, which will leave a lasting impact on communities and the economy.
It claims the escalating costs of running a pub have reached unsustainable levels, with publicans struggling to break even, let alone turn a profit.
Rising labour costs, the increase in energy and water bills along with what it called some of Europe's most punitive taxes have created a perfect storm, threatening the survival of an essential part of Irish social life, the VFI said.
Pat Crotty, chief executive of the VFI, said the pub trade in Ireland is at a breaking point.
"Without meaningful government intervention, we will see a wave of closures that will impact communities across the country. Publicans need long-term support, not just one-off schemes, to navigate these unprecedented challenges," he stated.
He explained that the Government takes €1.77 from every pint sold, while the drink supplier receives over €1.50 and staff costs account for €1.41. By the time overheads like insurance and TV sports subscriptions are paid, the typical publican is left with just 17 cent.
"The average publican doesn't come close to selling enough pints to make it a profitable business," he said.
Among the measures the VFI wants to see in Budget 2025 is the reduction of 7.5% in Excise Duty, which will provide immediate relief to publicans, allowing them to reduce prices and increase margins.
It is also calling for the hospitality VAT Rate to be cut to 9%, saying that for pubs serving food, a reduced VAT rate is essential to maintaining affordability for customers while enabling publicans to remain competitive.
Other measures include a reduction in employer's PRSI, a pause the move to a Living Wage and a reduction in the High VAT Rate from 23% to 21% to will help reduce overall operational costs for publicans.
