Taoiseach not ruling out cutting excise on alcohol

Taoiseach Micheál Martin has not ruled out cutting excise on alcohol in next month's Budget, but said ministers have not yet discussed a specific measure.

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But of course, given the propensity of the industry itself to raise the cost of alcohol, in terms of the price of a pint, which varies in terms of locations, we will look at different sectors in the round.

The government reduced VAT for the hospitality sector in last year's budget, bringing the rate for food services down from 13.5% to 9%. That reduction covers food and non-alcoholic drinks, while a similar measure for pubs has been suggested. The Irish Examiner reported that Enterprise Minister Peter Burke supports an excise cut, particularly to help rural pubs.

Martin also rejected suggestions of coalition tensions over whether to pause next month's planned carbon-tax increase. He said the increase still required discussion because carbon-tax revenue is built into the National Development Plan. The money supports climate initiatives, fuel allowances, assistance for farmers and home retrofitting.

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The reality is of course that the revenues from the carbon tax trajectory, as provided for in legislation, is baked into the National Development Plan expenditure profile.

Martin said retrofitting and solar projects should ultimately reduce energy costs, while acknowledging that not everyone has been able to benefit from grants and other supports. He said Minister Darragh O’Brien was examining further solar initiatives to help reduce energy bills. Harris said the carbon-tax trajectory had been set before the wars in Ukraine and the Middle East, while expressing confidence in Ireland's current economic measures.

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That’s the real transformation that has to occur.