Call for 40% excise rebate on pints in rural pubs
The Vintners Federation of Ireland (VFI) is calling for a 40% rebate on the excise charged to draught products sold in pubs.
The VFI said the rebate would help protect rural pubs that play a vital social role in their local communities, while also preserving employment in a sector struggling with soaring costs.
According to the VFI, Ireland has the second-highest excise rate on alcohol in Europe, with taxes accounting for nearly 30% of the price of a pint.
The federation added that the current tax burden is unsustainable and is placing severe financial pressure on publicans, particularly in rural areas.
The excise rebate scheme is based on a report written by Anthony Foley from Dublin City University (DCU) Business School.
The proposal would see pubs provide evidence from suppliers that it purchased a certain number of tax-compliant kegs of qualifying beverage.
The rebate of 40% is calculated by Revenue, up to a maximum of €20,000. The appropriate rebate would be credited to the VAT due in each VAT period of the following year.
A 50-litre keg of Guinness contains 88 pints and generates €47.36 in excise per keg. A 40% rebate would be €18.94 per keg.
To receive the full rebate of €20,000, a public house would need to sell 1,056 kegs annually or 20.3 kegs weekly. The VFI said that most rural pubs would not sell this volume of kegs.
Pat Crotty, chief executive of VFI, said that “publicans are not asking for a handout – we are asking for fairness"
"A 40% rebate on the excise charged on draught products is a practical, targeted support that would make a real difference for small pubs across Ireland.
"These are businesses at the heart of their communities, providing employment, social connection and play a key role in our tourism offering," he said.
The VFI has welcomed the government's commitment to support small and medium sized enterprises (SMEs) in the Programme for Government, which acknowledges the increased cost pressures on the hospitality sector.
"However, it is vital that any measures introduced benefit all pubs – not just those serving food," Crotty said.
The VFI argues that while the proposed VAT reduction for hospitality is welcome, it will only benefit pubs that serve food, leaving traditional pubs without support.
The draught excise rebate, in contrast, would ensure that all pubs, regardless of size or location, benefit.
“Rural pubs are facing an existential crisis. We have seen hundreds of pubs close their doors in recent years.
"If this trend continues, we will lose a vital part of Irish culture and community life. A draught rebate is a simple, fair, and targeted measure that would provide immediate relief.
"We estimate the rebate would cost €73 million annually, a small fraction of the VAT proposal," Crotty said.
The VFI is urging the government to include the draught rebate in the upcoming budget as a critical measure to preserve Ireland’s pub culture and sustain rural communities.
