Joe Cooney (Clare, Fine Gael)
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274. To ask the Minister for Finance his views that a tax credit scheme which does not reduce, rebate or offset excise duty would be distinct from the operation of the EU Alcohol Structures Directive; and if he will make a statement on the matter. [50424/26]

Simon Harris (Wicklow, Fine Gael)
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The Government recognises the social and cultural importance of pubs to communities right across Ireland as well as its economic contribution.

Any tax measure related to the supply of alcohol would need to be considered in line with the Alcohol Structures Directive, which provides for a harmonised framework for the taxation of alcohol products across the EU. The directive does not allow for differentiated excise duty rates between the on-trade and off-trade sectors. This means that Ireland cannot apply reduced excise duty rates to alcohol sold in pubs, restaurants or other licensed premises. Any changes to alcohol excise duty must make no distinction as to the point of sale.

If a tax scheme is designed on the basis that the granting of tax credits is directly linked to the volume and type of alcohol products purchased by pubs, such that the practical effect is to reduce the excise borne on those products, then it may be in contravention of the Alcohol Structures Directive notwithstanding that it is a different form of tax relief than an excise relief or excise rebate.

Furthermore, consideration would need to be given as to whether any targeted tax measure of this nature is compliant with state aid rules. Measures that may confer a selective advantage on a specific sector, such as incentives to support rural pubs, have the potential to constitute a state aid and, therefore, could not be introduced unless compliant with an existing framework or undertaking a full notification process.