Irish government decides not to increase excise duties

The Irish government has finally decided not to increase the duty on alcohol in the emergency Budget. The Irish Finance Minister, Mr Lenihan, explained he was concerned that any rise would encourage shoppers to buy drinks across the Border and lead to a loss of revenue.

A recent study carried out for the European Commission shows that, although Ireland has the second-highest excise duty rates on alcohol in Europe, the “real cost” of alcohol in Ireland has dropped 50 per cent since the mid-1990s as income has risen and excise duties declined in real terms.

The growing affordability of alcohol has encouraged people to drink more, to the extent that overall alcohol consumption grew faster in Ireland than anywhere else in Europe between 1986 and 2003.