Written answers
Tuesday, 21 June 2011
Department of Finance
Tax Code
9:00 pm
Dara Murphy (Cork North Central, Fine Gael)
Link to this: Individually | In context
Question 98: To ask the Minister for Finance if he will consider a risk equalisation within the alcohol retail industry by way of a reduction in excise paid by public houses which would be offset by an increase in excise paid by off-licences to narrow the pricing gap that currently exists between the two sectors. [16409/11]
Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context
It is assumed that the Deputy is referring to the annual alcohol excise licence fees payable by the on- and off-trade respectively. In that context it has to be recognized that the main Exchequer receipts for the sale of alcohol arises from excise on alcohol products, which for example yielded €968m in 2009, compared to a yield of around €13.6m in respect of all alcohol excise licence fees. Off-licence owners require a licence for each type of alcohol they sell, for each premises. Excise duty on off-licences is currently set at €500 each per licence for a beer, wine or spirits off-licence, having been increased in recent years. This means that a typical off-licence premises, including a supermarket, offering the full range of alcoholic beverages for sale will have three off-licences and will be paying €1,500 per annum in duty.
Pubs have a graduated licence duty fee structure based on turnover ranging from €250 to €3,805 (total of 6 bands). However, over 70% of pubs fall within the two lowest bands and pay excise duty of €505 or less. Some 85% of pubs pay annual licence fees of €1,140 or less – i.e. well below the usual full off-licence trader at €1,500 per annum. Indeed only around 10% of pubs pay licence fees that are clearly above those of off-licence traders, but the amounts involved are minor compared to the overall tax take otherwise from alcohol. The average licence fee paid by the on-trade is around €778.
It is difficult, therefore, to accept that there is a great deal of inequity in the present arrangements, and I have no plans to change them.
No comments