Oireachtas Joint and Select Committees

Wednesday, 23 November 2022

Committee on Budgetary Oversight

Report of the Commission on Taxation and Welfare: Discussion (Resumed)

Mr. Adrian Cummins:

I thank the Deputy for his question or statement on the rural pub. Several pubs that serve food are in our association. One of the biggest challenges now facing all businesses in hospitality is the energy crisis. The information we have from the energy providers is that the crisis we face will be a two-winter phenomenon, as they keep describing it. Therefore, we are only at the start of this. We welcome the Government's support by way of grant aid for our industry. I do not believe it will be enough for the vast majority of low-margin, high-energy-using businesses, not just in hospitality but also in the retail sector. I refer to businesses that use fridges, ovens, cookers and other such devices. The Government is going to have to consider this.

In the context of the committee's remit of budgetary oversight, we would like to raise the stealth taxes that are sometimes introduced, such as the sugar tax on soft drinks and the proposed latte tax on coffee cups. While people might have good intentions when introducing such taxes, they add to inflation, including consumer inflation. There are accidental consequences when the tax base is broadened in certain areas. I support our colleague's recommendation on having an impact assessment of proposed taxes. An economic impact assessment should be made by an independent body before a tax is introduced.

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