CONSUMERS IN IRELAND pay the second-highest excise duty on alcohol in the EU.

That’s according to new research commissioned by the Drinks Industry Group of Ireland (DIGI) and carried out by DCU economist Anthony Foley.

It found that excise on wine in Ireland is the second highest in the EU and UK, while excise on beer and spirits is the third highest.

This means that a pint of beer purchased in a pub in Ireland comes with excise of 55 cent, compared to five cent in Spain and Germany.

Meanwhile, a 70cl bottle of whiskey is levied with €11.92 excise in Ireland, more than half of the price customers pay, compared to a rate of €2.69 excise in Spain and €3.65 in Germany. 

There is a similar trend across wine, with excise making up €3.19 of the €11 cost of a standard bottle of wine purchased in an off-licence in Ireland.

The researchers say that “when VAT of €2.06 is included, this means 48% (€5.25) of the overall purchase price goes directly to the Government”. 

And while the rate of tax charged on an €8.50 glass of wine in a bar or restaurant is lower, it still makes up €2.39 of the purchase price, when excise of €0.80 and VAT of €1.59 are combined.

The research said this contrasts to 14 European countries that don’t charge any excise on wine, including Spain, Portugal, Italy, Germany and Greece.

France, meanwhile, charges just one cent on a standard glass of wine.

Foley remarked that the main aim of the report was to “objectively assess what the rate of excise in Ireland is compared to other countries across Europe”.

“The results show without doubt that Ireland has a very high level of alcohol excise tax in 2026 when compared with the large majority of other countries,” said Foley.

DIGI has said that the excise rate is “one of the main factors behind the high rate of pub closures in Ireland in recent years”.

The organisation for pubs outside the greater Dublin area, the Vintners’ Federation of Ireland, said in May that 2,200 pubs have closed since 2005.

DIGI has said that the government “must begin to take responsibility” for these closures.

It has called for a 10% reduction in excise in the upcoming budget to “improve the viability of the Irish pubs and ensure they can continue to make a valuable contribution to their communities”.

Secretary of DIGI, Donall O’Keeffe, acknowledged that there “may have been some argument for [higher excise tax] when Irish alcohol consumption was among the highest in Europe”.

However, he said “consumption has dropped to average European levels in recent years”. 

“As a result, the main impact such high taxes are having now is simply to make our pubs too expensive for locals and tourists alike and to push them out of business,” said O’Keeffe.

He added that the government “needs to wake up to the reality that super high taxes on alcohol are killing our pub industry”.

O’Keeffe also remarked that “high excise also has a negative impact on associated businesses such as breweries, distilleries and off-licenses”.

“The rapid decline of the Irish pub will only gather pace unless the Government wakes up to this reality.”