Irish wine chief wants 20% tax cut

Published: 23 November, 2009

The Irish Wine Association has called on the country's government to cut excise duty by 20% after official figures showed a 10.9% drop in sales in the year-to-date.

The Irish Wine Association has called on the country's government to cut excise duty by 20% after official figures showed a 10.9% drop in sales in the year-to-date.

The organisation claims that a 50 cent per bottle increase in tax last year has led to shoppers from the Republic crossing the border into Northern Ireland to take advantage of lower prices.

IWA chairperson Philip Robinson said the wine industry in Ireland had shed one in four jobs in the past year.

"The Euro/Sterling differential combined with lower excise rates in the UK means that many southern wine retailers simply cannot compete with northern counterparts," Robinson said. "It is estimated that up to 6.2% of wine purchases by southern consumers are now being made across the border.

"Many wine distributors are suffering from low levels of demand with companies having to reduce staff numbers or go into liquidation."

The 10.9% drop in wine sales was recorded in figures form Ireland's Revenue Commissioners.

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