The Drinks Industry Group of Ireland (DIGI) have said that a hard or no deal Brexit scenario will cause major problems for Ireland’s UK-dependent drinks and hospitality industry.
The group have urged the Government to reduce the levy tax on alcohol in the upcoming budget to provide immediate support to Ireland’s drinks and hospitality businesses before Brexit.
Drinks and hospitality businesses account for 4,602 jobs – 7.9% of all employment in Donegal. Hospitality employment—which includes pubs, hotels, B&Bs and restaurants—accounts for 9.5% of all employment in the West of Ireland.
Ireland pays the second-highest level of alcohol excise tax in the EU, paying the highest tax on wine, the second highest on beer, and the third highest on spirits.
Speaking today, Rosemary Garth, Chair of DIGI and Director of Communications at Irish Distillers, said: “In less than six months, Brexit will become reality. If talks collapse, a hard or no deal Brexit scenario will cause severe problems for Ireland’s UK-dependent drinks and hospitality industry. If the Government does not pursue an active ‘defence policy’ for the drinks and hospitality industry in Budget 2019, then the Exchequer could lose out on as much as €135 million in revenue.
“That’s why we need to take action now. The Government, in its last Budget before Brexit, has the power to make a positive change. By lowering alcohol excise tax, which is already the second highest in Europe, drinks and hospitality businesses can save money in case exports and tourism numbers drop, and invest in new products, new markets and new staff to power through any Brexit-triggered downturn.”
The Minister for Finance, Paschal Donohoe, will set out the Budget 2019 tomorrow, October 9, at lunchtime.
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