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IRISH WINE MERCHANTS are warning that another tax hike in October’s budget could force them out of existence.
The Irish Wine Association said that an tax increase of €1.50 on the average bottle of wine across the last two budgets “has meant that wine has been the hardest hit alcohol category in the last few years”.
IWA chairman Michael Foley said that over 1,100 people are directly employed in the Irish wine trade by distributors and importers with “thousands more jobs supported in the 13,000 pubs, restaurants, and independent off licences that sell wine”.
“Their livelihoods are now at risk due to the actions of the Government. Such unfair treatment of wine is crippling small businesses across the country.”
According to AC Neilson data to end December 2013, volumes in the industry are down 8.6%.
The IWA said that excise increases have added €18,000 to the cost of importing 1,000 cases of wine, with many small businesses struggling to get access to the credit that could support importation.
Tourism, Foley said, is also hurt as the cost of eating out becomes less competitive with other countries.
“Spanish tourists par almost twice the price for wine in Irish restaurants than they do at home. Failte Ireland research has shown that the price of alcohol is one of the main reasons why tourists wouldn’t return to this country.”
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Put the tax on the cheap ass cans of cider and lager. I’m sick of seeing tracksuits with tattooed fingers slurping out of their cans around Dublin.
There not the only people who drink canned beer or cider you pig ignorant fool
And to be honest if rather see them kneckin cans than banging up
How about you only pay the tax if you’re not in full time employment.
*They’re* kettle, teapot, black.
Excuse me for diversifying this headline.
But how come that a toyota landcruiser v8 diesel costs only half the price in asia❓❓
There is something fundamentally wrong with EU revenue strategy.
The greed and mismanagement of taxpayers money should be at the forefront of an investigation.
Move away from Dublin to a first world city then
Jeez, Paul, does it have to be either/or?
No it should be neither but one is preferable
aHHH Paul, you make the fatal assumption there that this is about the good of the people, its not! Its about raising money to pay bankers bonuses … (remember them everyone? they havnt gone away you know) Those drunkards don’t have any money, you do .
Same reason they couldn’t give a damn whether they drink cans or shoot up on the steps on the custom house every morning in plain sight… they don’t have anything to give to the bankers so leave them to it.
Is he having a laugh ?? Most places have 100% mark up in wine
I’ve just commented on this under the petrol article in relation to VRT, it’s an import duty, so isn’t that defeating the purpose of the EU open market? Euro wines shouldn’t be subject to this tax!
Class action suit anyone?
You paying?
Wow, I didn’t think about that Heisenberg, yes, class action suit? Providing Saul Goodman is available or of not I’m sure some activist lawyer could do it
Another black market opportunity for entrepreneurs.
Being a wine lover, I can not understand the huge difference in the same bottle of wine here and north of the border. I do a stock up run to NI regularly purely for wine, the price in pubs and restaurants is horrendous as it is in the supermarkets. One of my favourite wines is on average €12 here and £5 in NI, even taking into account diesel costs it’s cheaper. It surely can’t cost that much more to ship it here than to NI it’s all tax.
What wine exactly? I’m regularly in the north and in general I wouldn’t bother buying wine. It’s not worth it, and fuel doesn’t even come into it as I’m there already.
Jacobs Creek, Grenache Shiraz it’s a fiver generally when offer in NI and €9 or €10 on offer here
Jacobs gren/Shiraz and you call yourself a wine lover….. Really? You drive to the north for that alcoholic fruit juice?
Lol. It’s time to explore the jumilla region. Get yourself a bottle of Altos Luzon. That should be the standard for good red wine.
In italy on holidays at the moment drinking lovely local wine. €4 for a bottle and its incredible quality. There is no excuse for putting extra tax on wine in Ireland.
I envy youuuuu !!! :) where are you?
Charging more tax will result in higher prices on the consumer.
Glen you and Einstein must be besties.
I wont be paying more tax on wines, I’ll make my own, befor giving the goverment any more tax money to Waste!
If enough people start doing that then they will put a tax on home brew kits.
There’s already a tax on those…it’s called VAT ?
Nice… where do your grapes grow in Ireland? I’m curious….
Wine tax hits the Woking poor middle class. Not taxing beer and cider stretches the dole a bit further.
The people of Woking can look after themselves – what about us here in Ireland?
It’s ridiculous, When not target chemical beers and ciders?
Because wine drinkers will pay the extra and they know that.
Just read on Independent.ie that the NTA ( National Transport Authority) are considering a 10 to 15% increase in Taxi fares. According to Christy Humphries , a taxi drivers union rep, ” I assume people can afford the increase if their using taxis in The first place”. It’s this sort of arrogance that saw taxi drivers get no backing off the public when deregulation was first mooted and later brought into law. I just hope more and more people start using the night link so taxi drivers and their obnoxious representives once again fall on their own swords.
Why not Tax 2nd and 3rd homes – it might help stop property speculation?
Yet another example of how the middle class have born the brunt of the crisis.
Why does a bottle of red wine cost €17.99 in tesco?
When I can get the same wine in France €4.50.
Banana Republic that’s why!
We should be called the Republic of Rip Off!
Wine is the god’s nectar should be tax free! Tax that bullsh** cheap booze !!!!
Can’t believe I’ve to open a load to drink and enjoy a good wine with a steak or a good fish!
I work in the industry and my company is currently in double digit growth against last year both in value and case volume sold. More people are drinking at home which is great for my job security. I will admit that another increase will be hard to stomach but whatever price a bottle of wine is in the shops it will still be lot cheaper than any pub or restaurant. The wine merchants quoted in this article are low volume importers of high quality and niche wines. The market has always been difficult for high end wines but even more so since the economy collapsed. I do feel mister happy (noonan) will not increase for a third year
As far as I know it’s not an import tax.. the tax applies even if made in Ireland. You can “import” as much wine as you like from EU countries for your personal consumption provided you are driving the car/van. The burden of proof is on Customs and Excise to prove it’s not for personal consumption. Obviously an HGV full of booze would be pulling the piss and likely to raise some eyebrows :)
It should be stressed that this is just the usual pre budget statement from an interest group. The market research shows far more fundamental problems for the wine industry. Some of these problems are demographic, competition, and their own poor marketing and product.
In order: throughout Europe young people are turning away from wine in favour of spirits and beer; beer is the new wine, the repositioning of craft beer has cannibalised some of the epicure end of the market; the relentless marketing of inferior Chilean and Australian muck, cheap and tasteless, combined with the sole usage of cepage t(the grape varietals, and in general single grapes at that in climates unsuited to that kind of winemaking) as a descriptor. People who like wine now say to you “I don’t like Chardonnay” as if that means something. Unfortunately wine importing is dominated by exactly the same people as the rest of the alcohol industry and small craft production of product designed to be tasty is simply not on their agenda in wine any more than it is in beer.
First-World problem. Not even vaguely important.
It’s important for the first-world… we’re losing our wealth piece by piece, in case you didn’t notice.
People could lose their jobs but no not important >.>
So we agree. Excellent.
restaurants and pubs have a 300%mark up on wine, until they cop on their trade will continue to fall. Wake up and stop being so greedy. Whilst the excise/vat is excessive, compared to the markup at the consumer it is just a pittance
The ”eating out becomes less competitive” argument is nonsense. Buying alcohol in a restaurant is subject to a far lower level of VAT.
System-Bolget here we come. State run off licences that only open at certain times just like in Sweden. Every aspect of life there has the government all over it. We’ve sold our country out.
#scaremonger
Sour grapes
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