Written answers

Wednesday, 8 November 2017

Photo of Peter FitzpatrickPeter Fitzpatrick (Louth, Fine Gael)
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88. To ask the Minister for Finance if he will address a matter (details supplied) regarding VAT and excise. [47168/17]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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I believe the issue the Deputy is referring to is that of below cost selling of alcohol products.

The remit of my Department extends to the taxation placed on alcohol products. The issue of below cost selling is a matter in the first instance for my colleague the Minister for Business, Enterprise and Innovation.

The prohibition on below cost selling was removed when the Groceries Order was abolished in 2006 by the Minister for Jobs, Enterprise and Innovation. It was removed to spur greater competition into the grocery trade by allowing retailers freedom to determine how they price their products. Any moves to directly prohibit this practice would possibly be contrary to EU State Aid rules.

However, the Deputy may be aware that, in respect of the price of alcohol, my colleague the Minister for Health is currently bringing forward legislation to tackle the issue of cheap alcohol. The Public Health (Alcohol) Bill contains a provision for a minimum price on each unit of alcohol sold, regardless of the point of sale. This should go some way to addressing issues arising from the sale of cheap alcohol.

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