Exorbitant Excise Duties: How Ireland’s High Alcohol Taxes Impact Consumers and the Economy” Key Search Terms: – Alcohol excise duty – Ireland’s excise taxes – Europe’s highest excise duties – Impact of excise taxes on consumers – Economic effects of high tax on alcohol

Irish consumers face the second-highest excise duty on alcohol in the EU and UK, trailing only Finland according to new research from Dublin City University economist Anthony Foley. Commissioned by the Drinks Industry Group of Ireland, the study highlights steep levies on beer, spirits, and wine that push everyday pub prices far above continental averages.

How Irish Alcohol Excise Compares Across Europe

The new DCU research, commissioned by the Drinks Industry Group of Ireland, maps out a stark divergence between Irish taxation and rates across the rest of the continent. According to Anthony Foley’s findings, a pint of beer bought in an Irish pub carries an excise duty of 55 cent. By comparison, that same pint attracts just five cent of excise in Spain and Germany.

Spirits face a similarly heavy burden. A standard 70cl bottle of whiskey in Ireland incurs €11.92 in excise alone. That figure accounts for more than half of the total retail price paid by customers. Contrast that with Spain, where the excise levy sits at €2.69, or Germany, where it is €3.65.

Wine taxation tells an even sharper story. A total of 14 European countries charge zero excise duty on wine, including Spain, Portugal, Italy, Germany, and Greece. France charges a mere one cent on a standard glass of wine. Meanwhile, off-licence customers in Ireland pay an excise of €3.19 on an €11 standard bottle of wine. When adding €2.06 in VAT, a staggering 48%—or €5.25 in total—goes directly to the government on that single bottle.

For wine purchased in a bar or restaurant, the tax remains substantial. An €8.50 glass of wine in a commercial venue combines €0.80 in excise and €1.59 in VAT, driving the total tax bite to €2.39.

Prof Foley explained the core motivation behind the project:

“The main aim of this report is 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.”

The Crisis Facing Irish Pubs and the Call for Budget Relief

Industry representatives argue that these towering tax rates are accelerating the demise of traditional drinking establishments. The Vintners’ Federation of Ireland noted that 2,200 pubs have shut their doors since 2005. The Drinks Industry Group of Ireland points directly to the excise regime as a primary driver behind these closures.

In response to the data, the drinks sector is pressing for swift legislative action in the upcoming national budget. They want a 10% reduction in excise duties to shore up struggling venues. Donall O’Keeffe, Secretary of the Drinks Industry Group of Ireland, conceded that historical consumption patterns once offered a justification for high levies.

“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.”

O’Keeffe pointed out that Irish alcohol consumption has dropped to average European levels in recent years. Because of that shift, he argued that the taxes now serve mostly to price locals and tourists out of the market. He warned that the government needs to wake up to the reality that super high taxes on alcohol are killing our pub industry and that the rapid decline of the Irish pub will only gather pace unless the Government wakes up to this reality.

Beyond the local tavern, O’Keeffe emphasized that the fallout hits connected manufacturing and retail sectors:

High excise also has a negative impact on associated businesses such as breweries, distilleries and off-licenses, according to industry warnings.

Despite similar lobbying efforts from the drinks sector ahead of last year’s budget—which contrasted with a counter-call from Alcohol Action Ireland for a 15% tax hike—excise rates remained untouched. With the next budget cycle approaching, operators hope policymakers will reevaluate the heavy government take.