Drinks Industry Group Urges 10% Alcohol Tax Cut in Ireland

The Drinks Industry Group of Ireland (DIGI) is calling on the government to implement an immediate 10% reduction in alcohol excise tax for Budget 2027. This demand follows the release of a report by economist Anthony Foley, which shows that per capita alcohol consumption among Irish adults fell by 2.1% last year to 9.30 litres of pure alcohol. This decline continues a 25-year downward trend, representing a 35.6% decrease since the 2001 peak and bringing Ireland's consumption levels below the European Union and UK sample average of 10.0 litres.

Beer remains the most popular choice with a 42.1% market share, though its volume sales dropped 2.7%. In contrast, wine consumption grew by 4% to a 29.4% market share, more than doubling its popularity since 2000. The shift toward moderation is attributed to health tracking, changing consumer preferences, and the rise of non-alcoholic alternatives.

Donall O’Keefe, secretary of DIGI and CEO of the Licensed Vintners Association, argued that current excise rates are punitive and reduce the competitiveness of the Irish tourism and hospitality sectors. Citing the closure of over 2,200 pubs since 2005, O’Keefe stated that the high taxes place undue cost pressures on small family-owned businesses and rural pubs, which he describes as essential to the social fabric of local communities.