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wine via Shutterstock

That extra euro on a bottle of wine has raised €45 million in taxes

The Irish Wine Association says the tax is disproportionate and excessive, and wants it reversed in the upcoming Budget.

REMEMBER THAT EXTRA euro Minister Noonan placed on a bottle of wine in last year’s Budget?

The steep tax rise garnered plenty of attention when it was announced last December, with representative body the Irish Wine Association calling it “disproportionate, excessive” and contrary to the Governments’ “stated aim to support small business”.

Well, we now know how much has been raised in taxes for the State as a result of the measure: the Department of Finance has confirmed €45 million was brought in by the levy between January and the end of August.

Minister Noonan revealed the figure in an answer to a parliamentary question from Fine Gael TD Brendan Griffin. Speaking to TheJournal.ie, the Kerry South deputy said he had been curious as to how much the measure had raised, and that he welcomed the figure:

“Anything we can do to bring in extra revenue that means we aren’t having to be cutting, for example, services for older people, is to be welcomed,” Griffin said.

Asked whether he would support a further increase in the tax, he said said that “everything should be considered” in the run up to the Budget, but that there was a danger that if another rise was brought in “you might be into diminishing returns”.

Griffin added that “not one person” in his constituency had been in contact with him to complain about the tax since it was brought in.

Excise on wine brought in around €231 million in both 2011 and 2012, according to Department of Finance figures. The take for the first nine months of this year was at €174.8 million; the expected boost in trade in the run up to December is likely to bring the final figure well above the €231 million figure by the end of the year.

Competitiveness

The IWA is reiterating its call on the Government to reverse the measure, which it says is “challenging Ireland’s competitiveness as a tourism destination”.

Chairman of the body, Michael Foley said: “Ireland has the highest levels of excise in the EU and as a result is one of the most expensive countries to purchase wine.

“This clearly increases the risk of expediting cross-border shopping, which has a huge impact on the overall Irish retail sector.

“In basic terms, if we look at a standard €8 bottle of wine, a massive 53 per cent of this price is attributable to tax (excise & VAT).”

Corresponding VAT rates were not released by the Department, which said that “VAT returns do not require the yield from a particular sector or sub-sector of trade to be identified”. However, the IWA puts the overall VAT figure for wine for last year at €251 million.

Read: Diegeo defends Arthur’s Day, saying its a music festival and celebration of the pub >

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62 Comments
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    Mute andrew sutton
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    Dec 29th 2016, 8:20 AM

    Customers can already self exclude and need to be 18 to enter a betting shop. A total BAN on the ” virtual product” including all racing ( horses, cars, dogs, bikes, football) and numbers generated games like the bingo and roulette needs to introduced. Most of the major shops in this country are making their huge profit in theses areas of gambling. As a former employee of 15 years ive seen with my own eyes the problems people have with it.

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    Mute Alan Ball
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    Dec 29th 2016, 8:32 AM

    @andrew sutton: much of what you say is true.I do believe that the consultation of people who were in the industry be seriously considered.I somehow doubt that they will consider such consultation feasible.Legislation appears for discussion regularly in the dail that seems to be the product of virtual research,take the HSE as an example…..Let’s ask a lot of administrative people the best way to utilise nurses and junior doctors. We all know how that works out.

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    Mute gold3n
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    Dec 29th 2016, 8:46 AM

    You are 100% right Andrew, plus with the self exclude all the responsability is put on the customer and the bookies take none. They pray on the lower class areas, look at the amount of bookies in and around the Henary street area compard to Graffton street. Paddy Power have 8 shop’s within an half mile of the spike .

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    Mute Dave O Keeffe
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    Dec 29th 2016, 9:06 AM

    Why is the national lottery excluded? They made it even more of a mugs game by upping prices and increasing the number of balls this year. Scratch cards need to be included

    55
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    Mute Anthony Toby Kielthy
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    Dec 29th 2016, 9:25 AM

    Absolutely dave , also ” amusement ” arcades , the amount of under 25s losing their proverbials in these places is nauseating .

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    Mute Jim
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    Dec 29th 2016, 8:42 AM

    As a person who likes a bet every couple of weeks think it would be a good idea to get rid of online gambling with credit/visa cards.Let people top up in the betting shops with their customer cards and then use that to log on and bet online if they wish.All they can then bet is whats on their account.We all think alot more about what we spend when we see the money in our hands before its passed over the counter.Far to easy to bet online as it almost doesn’t feel like real money if that makes sense.

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    Mute gold3n
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    Dec 29th 2016, 8:54 AM

    Maybe even a national betting card with a limit. You put in you’re code and once you have gone over you’re monthly amount you cant gamble any more.

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    Mute John Weldon
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    Dec 29th 2016, 9:07 AM

    @Jim: Sounds like a thoroughly Irish solution, we should do the same with alcohol, cigarettes, fast food, luxury goods. Don’t mind that thousands of people do it every day without a problem. Lets screw everyone because of the few that take it too far.

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    Mute Damien Kirwan
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    Dec 29th 2016, 9:16 AM

    Spot on John

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    Mute Jim
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    Dec 29th 2016, 11:31 AM

    To be fair John, If you’re betting every day then it’s safe to say it is a problem.And it’s more than a few that take it too far.Its too easy to conceal a gambling addiction whereas with drink, cigarettes and drugs the signs are generally obvious.

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    Mute Scundered
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    Dec 29th 2016, 8:04 AM

    All it takes is one look at the clientele who attend the bookies on a regular basis to know it’s a losers game. The wealth of Paddy Powers alone should get the message through.

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    Mute John Donovan
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    Dec 29th 2016, 8:12 AM

    you are a moron if you are judging people by their looks and how regular they attend a bookmakers. having worked in many some years ago and known the clientele personally i can verify there is a wide array of people who frequent these eatablishments.

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    Mute Alan Ball
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    Dec 29th 2016, 8:16 AM

    @Scundered: interesting comment.You should read the article above,it is close to the subject you seem to be commenting on.
    That is the point of the comments section….Read article and then express a view.
    As an aside ,I doubt very much if you are a stranger to a bookies.There is more than a little latent bitterness in your ‘comment’.

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    Mute Drew TheChinaman :)
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    Dec 29th 2016, 8:33 AM

    As the saying goes ‘The house always wins.’ If they didn’t, as you rightly point out they wouldn’t be in business long.

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    Mute Alan Ball
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    Dec 29th 2016, 8:06 AM

    The government appears to be dragging out this much needed legislation. Self exclusion has been around for quite a while,5 years or so.Some of the practices employed by the online companies are criminal,almost.They will take a lot of study and I personally do not feel this government is committed to the completion of this legislation in any reasonable time frame. It is a cash cow and tax revenue will always trump social needs regardless of the damage to members of society.

    18
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    Mute Vincent Jennings
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    Dec 29th 2016, 9:38 AM

    Over 10 years ago, a Fine Gael senator attempted to introduce a Private Members Bill that would have closed off the availability of the Tote at racecourses and dog tracks to under 18′s.
    The Bill was supported by Gamblers Anonymous but the Fianna Fáil led Government opposed it.
    The same Senator became Leader of the House in the previous administration but chose not to prevail on the Cabinet to change the law.
    Under age gambling is illegal in bookies shops and also National Lottery products yet every day youngsters attending horse and dog meetings are entitled to bet courtesy of the State-sanctioned Tote cartel. Go figure.

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    Mute Pilib O Muiregan
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    Dec 29th 2016, 11:56 AM

    @Vincent Jennings: In fairness if under 18s are placing bets at race tracks etc its not upto the government to stop them. Parents have to take some responsibility here.

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    Mute John Jones
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    Dec 29th 2016, 4:40 PM

    Paddy power will let u bet and bet but as soon as you try to withdraw money it then closes you’re account and then looks for I’d. It should be id first

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    Mute eastsmer #IRExit
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    Dec 29th 2016, 2:55 PM

    In 1967 when I was a kid, I placed a bet for my Granny in the local bookies on the Grand National.
    It didn’t turn me into a gambler, in fact I don’t think I have ever been into a bookies since.

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    Mute JJ Woods
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    Dec 29th 2016, 1:12 PM

    The Gambling Control Bill in it’s present state is not ready to legislate on .

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