Holly Cairns (Cork South West, Social Democrats)
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113. To ask the Minister for Finance the reason for the exclusion of mead, categorised often as other fermented beverages, specifically those sold under CN code 2206, from the small cider producer excise relief scheme; and if he will consider including it in Budget 2025. [37308/24]

Christopher O'Sullivan (Cork South West, Fianna Fail)
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118. To ask the Minister for Finance the reason for the exclusion of mead from the small cider and perry producer excise relief scheme, specifically those drinks produced under CN code 2206 categorised as other fermented beverages; and if he will consider including this category in Budget 2025; and if he will make a statement on the matter. [37518/24]

Jack Chambers (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 113 and 118 together.

Council Directive 92/83/EEC (as amended) and Council Directive 92/84/EEC set out the EU rules for the harmonisation of excise duty structures and rates for alcohol and alcoholic beverages. These rules provide uniform definitions for excise product categories, lay down the tax base and structures applicable to the various alcohol products, establish minimum excise duty rates, and set the conditions for any reduced rates or special regimes. Under the EU rules, one of the product categories is ‘Other Fermented Beverages’ (OFBs). Some changes were made to the EU rules in 2020, including the introduction of a new provision that allows Member States the discretion to apply an excise relief (reduced rate scheme) for small independent producers of OFBs. Member States who choose to apply such a relief are permitted to limit it to certain types of OFBs.

Chapter 1 of Part 2 of the Finance Act 2003 (as amended) transposes the Directives into Irish law. This law identifies two groups of OFBs: ‘cider and perry’ and ‘OFBs – other than cider and perry’. The law defines ‘cider and perry’ with reference to their strength and content. Essentially, they are made from fermented apple or pear juice. The second group, ‘OFBs – other than cider and perry’, covers all other OFBs, for example, fruit wines, or fermented products such as mead.

In Budget 2023, the Minister for Finance announced his decision to introduce a reduced rate scheme for small producers of ‘cider and perry’. The legislation for this was enacted in Finance Act 2022 and the relief came into operation from 1 January 2023.

The relief applies to small producers of ‘cider and perry’. Mead is not ‘cider and perry’ and so is not covered by the provisions of the relief scheme.

As the Deputy will be aware it is a longstanding practice of the Minister for Finance not to comment, in advance of the budget, on any tax matters that might be the subject of budget decisions.