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Tax Code

Dáil Éireann Debate, Monday - 11 September 2023

Monday, 11 September 2023

Questions (429)

Patrick Costello

Question:

429. Deputy Patrick Costello asked the Minister for Finance the reason that alcohol-free beverages cost the same as their alcoholic counterparts given that no excise duty applies; if he will take appropriate steps to ensure that there is a price differential to encourage more persons to switch to alcohol-free drinks; and if he will make a statement on the matter. [37399/23]

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Written answers

Alcoholic beverages are subject to alcohol products tax. For example, excise duty on beer is charged based on the percentage, by volume, of alcohol in the beverage. Typically, the excise duty on a pint of 4.3% ABV beer is 54 cent. Non-alcoholic beer is not liable for any excise duty. 

Alcoholic beverages are subject to the standard rate of VAT, currently 23%. Ireland currently operates two lower rates of VAT, 13.5% and 9%. At present, Ireland applies the 9% VAT rate to certain non-alcoholic beverages such as tea, coffee and fruit juices where they are supplied in the course of catering. As the Deputy will be aware, this will revert to 13.5% from 1 October 2023 in line with the rest of the hospitality and tourism sector.  

The retail price of non-alcoholic beers is determined by retailers and publicans and this should reflect the fact that no excise applies to such products as well as other factors. Other than the portion that is taxation, the Department has no role in setting the price of these beverages.

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