With Ireland paying the second-highest alcohol excise in Europe, its government has been urged to save the country’s pubs and cut the rate by 10%.
Ireland’s excise rate on spirits is the third highest in Europe
Ireland’s excise of €3,458 (US$4,048) per hectolitre (100 litre) of pure alcohol (HLPA) is lower than only Finland for nations in the European Union (EU) and the UK, a report commissioned by Drinks Industry Group of Ireland (DIGI) has found.
Ireland is also subject to the third-highest excise rate on spirits, behind only Finland and Sweden, with a 700ml bottle of whiskey in Ireland hit with a levy of €11.92 (US$14).
Even though the spirit is produced in Ireland, the rate is well above countries such as Spain and Germany, whose drinkers pay €2.69 (US$3.15) and €3.65 (US$4.27) excise on 700ml bottles of spirits respectively.
The three lowest spirits tax rates are in Bulgaria, Croatia and Cyprus.
DIGI secretary Donall O’Keeffe said the data “confirms that the level of tax levied on alcohol in Ireland is far above most of our European neighbours”.
He continued: “While there may have been some argument for this when Irish alcohol consumption was among the highest in Europe, 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.”
Taxing pubs ‘out of existence’
The DIGI is calling for Ireland’s government to reduce the alcohol excise by 10% at the next Budget, which will be presented on 6 October.
The trade body believes the excise is one of the main reasons for the high number of pub closures Ireland has suffered in recent years.
O’Keeffe said the government “needs to wake up to the reality” that the tax rate is “killing” Ireland’s pub industry.
“Irish pubs are celebrated around the world and are often the only community hub in isolated communities, yet the government seems to be content to tax them out of existence,” he said. “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. That is why DIGI is calling for an immediate 10% cut in excise in this year’s budget.”
Compared to the average in 2001, Ireland’s alcohol consumption in 2025 was down by more than a third, DIGI revealed last month.
Anthony Foley, who authored the report and is an associate professor emeritus at Dublin City University, added: “The main aim of this report is to objectively assess what the rate of exercise 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.”
Exports of Irish whiskey, which make up 45% of Ireland’s total drinks export value, fell by 5% last year. This was attributed largely to challenges in the US, which is Irish whiskey’s biggest market.
It is noted that one-third of all EU spirits exports are Irish.
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